Good morning traders!
Hopefully everyone has had a great week and has pushed to better themselves each day.
This weekend I will be sharing what models and analysis I have been working on behind the scenes, keep an eye out in your inbox!
Let’s touch on yesterdays session and then move to my thoughts for today.
Our 4080 long has a small window to work which I posted in the telegram an update to this level.
Right out of the open emini broke above 4080 but only had upside of 1.25:1 risk reward for 7 handles but not a trade I was looking for. As soon as this broken back below, LIS was hit and I was no longer looking for a long.
For the next two hours we worked our way down near where I wanted to start taking off risk and move LIS to B/E as usual.
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Back to yesterdays levels…
The cover down into 4058 was picture perfect to take all risk off this trade and allow price to do it’s thing. Sellers once again dried up and the dip was bought making way for a move back into where most of yesterdays value was built up.
Happily taking my handles and closing out the session, even with anticipation of possible bounce at 4058 I was not one to look to be a buyer.
Now, PCE has just released and I want to give some thoughts before I begin to pull the Daily Levels.
Personal Income 0.3%, Exp. 0.2%
Personal Spending 0.2%, Exp. 0.3%
Income increase is a positive but as long as this is not pushed back to the consumer with higher prices of goods.
Personal spending is exactly what the FED is looking for as he deploys rates to kill all demand. While this may still be seen as bad with an increase, the signs are pointing to a more healthy recovery. Fed has one job right now and that is to kill all demand and so far its now looking good.
After PCE release, emini spiked from 4088 up to 4098 and struggling to move higher.