Weekly Market Recap – Week 25/26 (2020)

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Here it comes, my first red week market recap. It had to come eventually. Fortunately, I am looking at only small losses. Unfortunately, I’m below my monthly target again, meaning the last two days of the month next week, now have to be solid green days with no more losers if I want to hit my monthly target.
In week 25 I didn’t trade at all, cause I was feeling a bit under the weather. Always dangerous sitting at the desk, when you’re not feeling 100%, the risk is just multiplied too much. So best to take it easy, recover and then attack afterwards again.
Let’s review the market of Week 25/26 in 2020 in my Weekly Market Recap.
I hope you enjoy my weekly market recap. Let me know any questions or comments in the comments section below.

Table of contents

Profit & Loss Update

Daily PnL

Alright, in week 25 I wasn’t trading at all, so flat PnL at that front. No trades means no losses, so good capital preservation right there. On a more serious note, I missed out on probably one of the most volatile weeks of the year, considering other traders had some insane profits going on that week. But you never know what would’ve happened. Volatility goes both ways, so could’ve been a big red week as well.

In week 26 I was back at the desk. Unfortunately, finished it in the red, closing at -£73.33. My first red week, after three solid green ones and one where I didn’t trade.
Monday started with a small winner, then Tuesday again a big, fat loser. My biggest red day so far, which put me down almost £550. Wednesday I was able to get back a little, but the market turned very quiet afterwards. In the end, I wasn’t able to fully dig myself out of the hole.

My winning trades % on the month is currently at 82%, which is really solid, considering I finished the previous 2 months with only 75% and 76% respectively.
The problem this month has been, that the 3 losers I had, each time took me below my position sizing threshold. Meaning I had to dig myself out of the hole with smaller position sizes each time, which obviously takes more winners to just get back to break-even.
Unsure at this point, if this was just me being unlucky or if I have to adjust my strategy on that aspect. For now, I’ll keep it as it is and monitor how it behaves in the months going forward.

Accumulated PnL

Profits on the week: -£77.33 (Target: £250)
Profits on the month (so far): £944.94 (Target: £1000)
Winning Trades %: 82% (Target: 75%)

Trades of the Week

Below, the trades I took last week with entries, exits and position sizes.

CDE

CDE - Weekly Market Recap - Week 25-26 (2020)

Strategy: Resistance Reversal
Entries:
-7 at 487.5
-7 at 496.0
-7 at 498.0
Exits:
+7 at 473.0, Profit: £101.50
+7 at 488.0, Profit: £56.00
+7 at 476.0, Profit: £154.00

So, I started the week with a nice resistance reversal. The resistance at 500 is always a good opportunity for a short trade. Only second to the reversal at 1000, which almost always is a great opportunity to bank some profits.
So I took 2 positions on Monday and took some profits then as well. Then on Tuesday it was shooting again to 500 and was even overshooting a bit. I took the opportunity for adding right back in, once it broke back below 500. I then took half of my profits Tuesday and the rest of it on Wednesday, once it made new lows. Easy trading this one.

VNET

VNET - Weekly Market Recap - Week 25-26 (2020)

Strategy: Resistance Reversal
Entries:
-1 at 2046.0
-1 at 2048.0
Exits:
+1 at 2349.0, Loss: £301.00
+1 at 2349.0, Loss: £303.00

Now to my loser of the week. In retrospect, not even sure why I traded this at all. There obviously is a resistance at 2000, but it shot through it like a warm knife through butter with the first candle of the day. So, the only sensible entry would’ve been once it falls back below 2000. But it never even did that. Instead, I was pushing my luck on this one and entered twice above the 2000 level. Not surprising, that it dipped back to 2000, then bounced off that now support level and made new highs the next day. This was also where I cut my losses. Remember, entries always only below the resistance, not above it!

DVAX – Part 1

DVAX - Weekly Market Recap - Week 25-26 (2020)

Strategy: Resistance Reversal
Entries:
-2 at 794.3
-2 at 789.3
Exits:
+2 at 744.1, Profit: £100.40
+2 at 739.1, Profit: £100.40

On DVAX, I was running two trades this week. Here comes number 1. We’re looking at a reversal at the 800 level resistance. It approached the level twice. The first time I entered my position, the second time I added to it. It hit my profit target on the same day. That’s how I like it. No holding overnight, no risk of gapping up against me.

DVAX – Part 2

DVAX - Weekly Market Recap - Week 25-26 (2020)

Strategy: Resistance Reversal
Entries:
-2 at 899.6
-2 at 872.2
Exits:
+2 at 962.4, Loss: -£180.40

The second part of DVAX this week was another Resistance Reversal. This time at 900. Unfortunately, it didn’t quite work out as expected, as it shot up to 970, hitting my first stop loss at 962. I’m still holding the other half of my position now, currently being down £18.80. It now looks more like a reversal at the 1000 level. We will see more on Monday when the market re-opens. My first entry on this one was actually fine, my second entry was a bit unlucky. I added to my position on a false mini break-out, from where it consequently rallied upwards. This happens. That’s why a large enough margin of safety is important for every strategy to work.

ALLY

ALLY - Weekly Market Recap - Week 25-26 (2020)

Strategy: Gap up short
Entries:
-1 at 1990.0
-1 at 1999.0
-1 at 1955.0
Exits:
+1 at 1935.0, Profit: £20.00
+1 at 1910.0, Profit: £80.00
+1 at 1899.0, Profit: £100.00

Last but not least, a Gap up short. Almost my favourite strategy. So here we had a Gap up close to the 2000 level, which it broke on market open. However, it didn’t look very strong above 2000 and broke below it several times in the first few minutes after the market open. This is where I placed 2 orders. Afterwards, it shot up to almost 2080, more than I anticipated, but not as much as it would’ve hit my stop losses. So all good on that front. I learned from VNET and didn’t enter above the 2000 level, but always only below. This time everything worked out fine. On market open the next day we saw a huge move downward, below 2000 and from there deteriorating further. I took my profits throughout the day.


I hope you enjoyed reading this Weekly Market Recap for Week 25/26 (2020). If you did, you can read other recaps and more content in my DSL Trading section.

If you are an equities trader out there and you are reading this, please contact me over social or drop me a comment in the comments section below, because I would love to catch-up.

If you are interested in learning how to trade equities as I do, please contact me over social or drop me a comment in the comments section below. I will then get in touch.

And as always, if you have any questions, drop me a comment in the comments section below.

Take it easy!

Dan Schenk


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