Traders —
I hope you had an awesome trading day.
This market continues to be incredibly difficult, but volatility is back, which is a positive for us as it allows for cleaner moves.
Let’s recap and plan for the next session.
Recap
Below were our plans coming into the session.
ES
NQ
Below were our levels & how they fared. Inflection levels = bullish biased above & bearish biased below.
ES
NQ
RTH
Spoos and NQ both gapped up at the open near resistance, making for difficult trading conditions.
I personally don’t short gap ups and after the action the last two days, shorting did not seem like a good idea. In fact, new all time highs seemed probable.
SO, I waited for a dip to buy, and a dip I got, but not one that was buyable, clearly. A couple of small Ls amounting to -4 ES points and I entered some calls as a last hoorah after the IB range expanded far beyond the 100% range, and it seemed unlikely for the prior day low to be taken out. Once the prior day low 5247 went offered, I had no choice but to cut the calls and flip bearish. We looked for 5220 below 5247 and 5200 below 5225, each which we got. We tried a hail mary long at 5222 as this was major weekly support, but this too failed once 5218 broke.
After hours we bought 18063 a couple times, totaling +65 NQ points.
Insane environment, but volatility appears to be back, which will allow for us to accumulate points, much easier.
Market Structure