Trades for Wednesday, December 2nd, 2015: – $32,931

04 Dec Trades for Wednesday, December 2nd, 2015: – $32,931

 

Swing:  SHORT 14,500 URBN at 21.43avg, STOPPED 7,500 shares 24.05, out – 2.62        =          - $19,650, 12/2/2015- STOPPED OUT 7,500 shares at 22.82, out – 1.39         =          - $10,425

Swing:  SHORT 13,400 NUAN at 20.25avg, 12/2/2015- Stopped out 21.59, out – 1.31   =          - $17,554

Overnight:  SHORT 1000 CRUS 32.96, COVERED 32.72, out + .24  =          + $240

Overnight:  LONG 500 Z at 24.85,

9:47 – SHORT 500 QCOM 53.25, COVERED 52.92, out + .33 =          + $165

10:10 – SHORT 500 QCOM 52.55, STOPPED 52.75, out - .20 =         - $100

10:18 – SHORT 400 LVS 46.15, COVERED 45.86, out + .29    =          + $116

10:27 – SHORT 1000 YHOO 35.89avg, COVERED 800 at 35.77, out + .12, COVERED 200 at 35.90, out - .01            =          + $94

10:49 – BUY 600 CMI 94.70avg, STOPPED 94.44, out - .26   =          - $156

11:21 – BUY 1000 ASNA 11.88avg, STOPPED 11.79, out - .09           =          - $90

12:25 – SHORT 500 SKX 32.34, STOPPED 32.39, out - .05      =          - $25

12:33 – SHORT 500 CRUS 34, STOPPED 34.22, out - .22        =          - $110

2:14 – BUY 4300 AAPL 117.65avg, STOPPED 116.55, out – 1.10       =          - $4,730

2:54 – BUY 1500 SVXY 59.39avg, STOPPED 58.40, out - .99              =          - $1,485

3:07 – BUY 3000 SVXY 58.68avg, SOLD 2000 at 58.93, out + .25, SOLD 1000 at 59.21, out + .53    =          + $1,030

( - $4,951 intraday)

Total Daily P/L:          - $32,931

Total Weekly P/L:        - $35,808

Total Monthly P/L:      - $35,808

Total Yearly Profit:      + $104,603

AMBA12012015

Summary:

SPY completely reversed today on a perfect storm breakout across all time frames coming into the day.  There was a potential bearish butterfly on the SPY if 210.20 broke which it did and triggered a hard sell-off.  We stopped out of the swing positions on NUAN and URBN today.  Today was the day of reckoning on the swings.  We had to bite the bullet and just close them out.  Made big mistakes shorting with too much sizing that interfered with the daily format and overstaying the full dry climate of the day.  This was a wake up call.  Got sucked into the eye of the storm on AAPL as they muscled it down non-stop.  Completely ignored the potential bearish butterfly set-up on SPY on the 110.20 break from the premarket watchlist in the afternoon.

Today was a wake up call.  I had to do some serious soul searching and reflecting on my actions.  It is my job to keep my members out of harms way.  I have failed this miserably in the past 3 weeks.  I have broken so many rules, it’s shameful:  trading size in a dry climate, misallocation of size, risk/probability out the window, emotional trading, overtrading, not taking stops quicker, ignoring paradigm shifts in the market, stubbornness and basically being an irritable asshole and showing my ass along the way.  It’s hard to hide when the mic is on.  We’ve been on such an amazing win streak that it was very hard to accept defeat and losses.  For the past 10 months we rarely had more than 3 losing days a month.   It’s not about how you handle winning streaks, but how you minimize the losses during the inevitable slumps.  This complacency unraveled hard in the past 3 weeks.  November/December are the worst months for me.  Stock can go in their own modes and diverge with peers, sectors and futures.  The markets will always humble you.  

The losses suffered is the past 3 weeks have been insane, mainly crappy position sizing and allocation.  I spread myself too thin thereby missing eixts.  We now have to implement triage and return to the morning wet climate scalping format.  We have started every morning with profits but sticking around through the dead climate by nursing the swings was a thread that caused things to unravel quickly.  Very tough lesson learned through this period… on too much EXPOSURE, too much exposure in positions and screentime, which can cloud judgement and twist reality.  Today was an eye opener when we kept scaling into AAPL the whole way down stubbornly.  Although this type of move is an anomaly (riding the 1-minute 5 period ma straight down for over an hour), I ignored and tried to reason, rather than accept the potential for a continued grind as the SPY bearish bat I mentioned actually came to fruition.  I lost my clarity during this whole mess and battle calm collapsed.

The damage is done.  Clean slate.  We will move forward with the lessons learned and limit exposure in terms of sizing and screen time.  We will grind back as normal and adapt to this extremely dry liquidity climate in defensive mode.  Total losses for the day including swings - $32,931.  A $1 profit is better than - $2k in losses any day, seems obvious…   It will be a slow grind back, but we will grind back.