Good morning traders!
Hope everyone had a great session as levels once again proved to be nothing short of excellent. Emini held above long level all session even hitting a HOD at 4240 as called in yesterdays newsletter. Not only this, stocks saw strong moves higher adding fuel to the fire. let’s take a peak at the Emini chart from yesterday with level provided on the chart.
Premarket Emini (S&P500 [SPY/SPX]) sold down from 4194 but was unable to sustain any selling below 4200. Once reclaimed back above, price was in cruise control on the way up with a robust trend profile built in the process. Dip into 4220s late in the session offered a dip buy opportunity as the bounce was at the low end of value built up at highs (4220-4232). This dip buy would be using intraday profiles only and has nothing to do with levels in daily plan. Once a trend days settles in there are usually at least 2-3 areas to get long for continuation of direction. They key is longing dips on uptrend and shorting rallies in downtrend. Doing otherwise will results in lower risk reward and more than likely drop win % as well. Even before the end of day sell down to 4220, there was a dip into 4225 before moving up through HOD up to 4239. This was another window to get long with the trend. Anytime I tag along a move like a trend I will be taking off size as we move to HOD, just above HOD and the rest for a larger move. LIS (Line In Sand/ Stop Loss) will move closer to current price as the trend continues.
Yesterdays session was great but most want to here about todays thoughts so let’s get into it!
On the Earnings front there is literally nothing to cover as we have nothing to report today and not many earnings have caught my interest as obvious. What is obvious to you shouldn’t be obvious to the public so make sure the idea isn’t overcrowded.
on the Events front we actually have some data that should be covered. Starting with NFP (Non Farm Payrolls), this has little to no budge anywhere for all of 2023 with argument it has moved slightly lower. Labor market remains extremely and there has yet to be any notable changes to this yet.
Unemployment rate on the other hand will bring a large move if we can see an uptick or another lower print which can short term bring selling. This rally is robust with no event to knock it off the track yet. This only will if we see an outlier print looking back to this year only (2023).
Emini chart for last release.
No reaction from the release but by the open Emini was crushed 60 handles to the downside.