Buying fear

The market is set for a gap open lower this morning after disappointing earnings reports from Amazon and Google last night. I would like to take a quick trade this morning. Gap opens into support often reverse within the first half hour and I think this trade has a high probability of success given the rally yesterday. Of course there is risk and it needs to be managed by using an appropriate position size, stop loss and good Reward / Risk.

SPY Daily Chart

SPY Daily Chart

About Stock Trade Journal

The information in this blog is not investment advice. Please consult a financial advisor before investing. I have been trading stock since the 1990's and survived the .com crash. I am developing software applications to help me trade better and now I am making them available to help other traders. This blog is also a way to share my experiences and observations in the market.
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