Daily Trading Recap - 2/2/26
TLDR
SLV volatility contracted and the bounce trade was not straightforward but I stayed with it still expecting a move tomorrow.
Took a few small losses on SNDK and ORCL and moved on without issue.
FUSE ended up being a scratch and a reminder to avoid boredom trades when small caps are slow.
Quick note: I published a new blog post this morning breaking down how I think about risk, position sizing, and why framing trades in terms of R completely changed my consistency as a trader. If you want more context on how I manage trades and use math to build systems, you can read it here:
The Concept That Quietly Changed My Trading
Everything changed after I understood and applied these concepts to my trading system.
Trades I Took
Silver was a top watch for a bounce trade. But I needed to see a few things before hitting the button. Since it was opening inside Friday’s range it either needed a higher timeframe ORB or it needed to clear out prior day’s low and reclaim. We got the latter around 11am, which was what I planned for in my Sunday Watchlist. I got long on the reclaim. Initially it looked good and I added to the position, but when it dropped back below 70 I had to cut those adds.
Later in the afternoon, SLV consolidated around VWAP and then broke back over 72. I added back on the reclaim and also sold some Wednesday put spreads to take advantage of the slow, grinding bounce. Those spreads were up nicely into the close, and I’ll look to sell them tomorrow. As far the position in commons, I sold a small piece at the close to manage risk and held the rest overnight.
I got short SNDK on the opening bounce into prior levels after Friday’s earnings selloff. I felt it could have a continuation day to the downside. That didn’t happen. I got stopped out fairly quickly. Looking back, I was just wrong on the read, and that’s fine. Risk was defined, the stop was respected, and I didn’t hang around hoping. Being wrong is part of the job. Staying wrong is the real mistake.
I went long ORCL over VWAP after it announced a $50B raise via debt and equity to fund cloud infrastructure. The daily chart is pretty beaten down, so I liked the odds of a relief bounce. The trade made sense on paper, but price never followed through. I got stopped out and moved on. No issue here, just another reminder that news plus a logical thesis doesn’t guarantee execution. Good thing I didn’t stay wrong because it sold off hard into the close.
FUSE was doing big volume and holding pre-market highs, which put it on my radar. I got long on the pullback. It pushed up to highs but stalled at 3.50 and started rolling over. I stopped out around breakeven. In hindsight, this was probably a boredom trade. Small caps were slow this morning, and I forced involvement instead of waiting for something cleaner. Not costly, but still a good note for the journal.
Swings
Current holdings: GEVX HUT IREN LUMN
Takeaways
Rather slow Monday after coming off a hot week. I took a few losses early but never let them snowball. The biggest lesson is to be careful with boredom trades after a period of good action. Since it was Monday I technically should not have traded the first hour, but I only put those rules in place with small caps in mind and will adjust to all execution going forward.