The Rational Trader: When the News Blows Up the Trade
JD explains how a zero factor score led to a missed entry and a bad fade — until Nvidia’s $100B shock forced a reset. Tomorrow, he’s eyeing Micron for a setup.
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Author: JD Dlugosch
The Rational Trader: Fading the Melt-Up — My 50% Gain on IWM
JD explains how he used his daily arbitrage model to fade an overstretched IWM rally, turning a tough open into a 50% gain on a defined-risk put debit spread.
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The Rational Trader: Cracker Barrel, Darden, and a Fed Cut
JD highlights two restaurant trades — Cracker Barrel and Darden Restaurants — and wraps with the Fed’s 25 bps rate cut, which gave markets a pop before fading.
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The Rational Trader: When Good News Turns Bad: A SPY Call Spread Trade
JD explains how a strong retail sales report became “bad news” for the market — and how he played it with a SPY 660/661 call debit spread for a 10% gain.
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The Rational Trader: Fading the Melt-Up With a SPY Put Spread
JD faded Monday’s “melt-up” with a SPY put debit spread, buying the 661 put and selling the 660 put for $0.44, and closed it for a 70% gain.
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