My Recent $SPY Trade December 2014

 

Here is a recap of my recent swing trade in $SPY step by step: 

  1. $SPY has been in an up trending bull market for years above the 200 day moving average and it has been making new all time highs. So the best odds for me is to trade the long side primarily.
  2. The 30 RSI on the daily chart is a very strong end of day support level for $SPY going back for years and even during down trends and bear markets. The 30 RSI in $SPY is an oversold level bought by many professionals. It is a great risk/reward entry to trade for swing longs inside the primary trend.
  3. I purchased $SPY near the $198 price at the end of day on December 16th near the 30 RSI close with 50% of my intended position. My initial stop was a close below the 30 RSI.
  4. I added on at the end of day on December 17th near the $202 price area I raised my stop to a close below the previous day’s low. 
  5. After the December 18th gap and go I raised my trailing stop to a  close below the previous day’s low again. I trailed it for the next seven days as $SPY made higher highs and higher lows.
  6. On December 30th $SPY finally was closing below the previous days low so I exited at around $207.70 at the end of day to lock in close to a 5% return on my initial position and an almost 3% return on the add on. This was a multiple six figure account so the dollar amount for me was very rewarding for a two week trade.