🐻SPY & QQQ - Bear Trend - High Volume - 10/26/23
Case Study: Another easy day to trade 0DTE and make money if you were patient and followed the BEAR TREND.
Summary:
Open lower and move lower was the theme on Thursday and it was an incredible day to trade because volatility showed her sweet beautiful face with big moves down, big moves up and big moves down again. Following the RIGD 0DTE trading strategy worked incredibly well.
OPEN SESSION
Both SPY and QQQ saw a big drop in the first 45 minutes of trading before chopping at the 415 and 316 strike.
If you traded the BEAR ALERTS at the open, you had 100-150% gains at this time and should exit down to runners.
Because we are already 3-STRIKES DOWN from the open price, BEAR ALERTS are going to be higher risk and lower return.
TREND:
SPY is in a BEAR TREND with HIGH VOLUME
QQQ is a ZERO TREND with HIGH VOLUME
When a trend is detected on one side and there's high volume, we will use the trend strategy for each.
Often the opposite side without the trend (QQQ in this case) has higher returns.
MIDDLE SESSION:
Both SPY and QQQ begin to rally at ~ 10:30.
Here we are waiting for an alert to enter a BEAR trade.
We anticipate a 2-3 STRIKE MOVE in that direction, but it's not clear at what price level that will happen.
Patience pays off because at 10:54 and 10:59 two perfect alerts are fired.
SPY
SPY has returned to the open price. Anyone who bought PUTS expecting the price action to continue just got killed. This is a perfect time to enter the trade because we are in a BEAR TREND with HIGH VOLUME.
This is a perfect trade, only a -4.43% drawdown with a max gain of 241.14% and end of day return at 181.24%.
QQQ
QQQ went 3-STRIKES DOWN in the open, so the short-lived rally only brings us to the 348 STRIKE.
This is a full size trade and an insane winner with 0% drawdown, 268.66% max gain and 198.27% end of day return.
DEADZONE:
At 12:15, it begins to look like the market may have put a bottom in.
This is 4 DOWN for SPY and 6 DOWN for QQQ.
When we get 4-5-6 STRIKES DOWN from the OPEN PRICE, we want to avoid BEAR ALERTS. It's unusual (but not impossible) that we see another nuke to drop us a full 6-7-8-9 STRIKES.
The lizards will fuck over the most people and make the most money by crushing traders who bought put late.
Simple rule to make and save you lots of money: 4-6 DOWN = NO BEARS, TRADE BULLS 4-6 UP = NO BULLS TRADE BEARS
END OF DAY RAMP
The market bottoms around 13:30 and proceeds to melt straight up. RIGD perfectly tags the event.
On SPY we get a 595 BULL followed immediately by a 870 BULL. Massive scores when we are 4-STRIKES DOWN from the OP (open price)
There's also a LOTTO at 14:33, which meets the LOTTO Trade Strategy requirements.
QQQ
At 13:27 RIGD fires a BULL CLUSTER (3-bull alerts within 1 hour with no opposite side alerts) that's 6D from the open price.
It's a massive winner hitting a max gain of 233.86%.
15:04, RIGD fires a 2D - 664 BEAR BOMB.
This is an epic trade because:
BEAR TREND DAY
PRICE has rallied from 6D to 2D
664 SCORE is HIGH
A nuke here would fuck a lot of people over
It's a phenomenal trade closing near the max gain at +200.43% in 56 minutes.
Summary:
There was a lot of money to be made on the way down, the way up and the way down again. When we see a 2-3 DOWN MOVE in the OPEN SESSION, do not chase it. There will be more opportunities.
The BULL ALERTS had a high max gain, but went negative by the end of the session. If you are trading against the trend, do not expect to hold for an extended period of time because it can quickly reverse.
Traders should always consider OC (open change) first and then score when using RIGD alerts.
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