Forbearance

"Arctic breath coils the mountain Rattling the forests' bones

Raindrops cling to branches Jeweled adornment flung to earth." The last week has been a long one full of recovery and restoration. I traveled to LA to audition for the fashion show - it was an interesting experience that brought me satisfaction and desire to pursue more. Film, fashion, and photography ideas are entertaining side quests. The traveling resulted in diminished sleep quality over several days and so I experienced a heightened state of inflammation. Old injuries flared up and I became sick, so I've needed to take nearly a week off from strenuous exercise and routine work activities. I have finally recovered to a degree of normality, and I am grateful for health. Today I went to work at LifeTime where I have been spending more time studying trading than working as a trainer; this is a direction that I embrace. I am highly motivated at LifeTime since my other colleagues have no higher ambitions. Checklist: Completed 2 Maverick Trading Chapters on Bull Pullbacks and Bear Rallies, reviewed Maverick Trading simulator and trade journaling. Finished one chapter of CMT level 2 on Moving average based Trend Trading, including strategies using Bollinger Bands, Keltner Channels, and Chaikin Oscillators. CMT level 1 quiz 125 questions: 88 percent Market Analysis:

On September 22 after doing market analysis, I took 2 bearish positions on September 22 SPY after the downside breakout from the symmetrical triangle. I entered 2 positions after it satisfied the requirements for a bearish entry - strong bearish candle closing below the 433-support turned resistance level on high volume confirmation, price action below the 20SMA and 50SMA after the 20SMA crossed below the 50SMA. My targets were the next support level down between $423-425. I did anticipate the formation of a bounce to the upside after hitting the support zone but I gave the trade some time to work in case the bounce happened immediately.

Position 1: SPY 11/03 Put $435 at $871 Principal - Sold Sept 27 at $1435 Position 2: SPY 10/13 Put $436 at $783 Principal - Sold Sept 26 at $1070 On September 26 in analyzing the movement of the SPY, I noticed that the price rebounded off its lows and began accumulating near a resistance level in a consolidation pattern on the 1min chart as SPY approached $425. At this point I decided to lock in some profits by selling the 10/13 Put at 37% gain as my first profit target was hit around 11:45am. On September 27 the price action broke below the $423 level. I watched the price move to $422.30 but quickly rebound up through the $423 level. At this point I sold the 11/03 put option in anticipation of a quick reversal to the upside. I sold at 1:51pm as SPY hit $423. I could not have timed the exit better, as the price instantly shot to the upside afterwards and climbed all the way back to $430. The chart reflects the perfect timing of this exit, which is extremely rare.

This trade utilizes the Maverick Trading Strategy of measuring profit targets with ATR or S/R and time estimate based upon the prior pivot point measured to the reversal region. The time estimate of this trade is 15 days as estimated from the prior swing high pivot point on July 27 to the swing low pivot on August 23 - the price differential on this prior move was 459-433 = $26. The estimate for the current trade is starting at the September 1 level of $453 so the estimate would be 453-26 = $427. When a trade goes beyond the original estimated price target, it is important to let the trades work for you. "Trees in winter lose their leaves. Some trees may even fall during storms, but most stand patiently and bear their fortune. Thier is the forbearance of being true to their inner natures. It is with this power that they withstand both the vicissitudes and adornment of life, for neither bad fortune nor good fortune will alter what they are."