Daily Plan 7.5.24
Welcome back everyone!
Lets dive into the recap for todays session then move on to tomorrows analysis.
Recap of chat on Wednesday:
Below is a recap of the chat regarding the SPX contracts, along with charts showing the E-mini and Nasdaq. These charts display the long levels (green line) and the long targets (orange line). Both indices rallied from the long level, reaching the long targets. Overall, the futures contracts performed perfectly, with nearly zero MAE. For those new to this, MAE stands for Maximum Adverse Excursion, which indicates how far the price moved against a level. For longs, it's how far the price fell below the long level; for shorts, it's how far the price rose above the short level.
In the overnight session, both indices hit their exact lows at the long levels, and the long targets were nearly the exact highs. Using these levels and identifying a clear uptrend during the last dip seen in the cash session made the SPX contracts appealing. In the chat below, you will see when I called out SPX calls with my target set just below the target for the E-mini. Whenever I use SPX contracts, I always reference the E-mini chart.
Now, let's cover how the SPX contracts performed. When provided, the 5220 calls were at 2.9. By the close, these contracts rallied all the way above 18! This translates to a $1,500 gain per contract if held until the close. See the chat below for more details:
In addition to the E-mini/SPX and Nasdaq trades, a swing trade was initiated for the July 19th contracts on AVGO. These contracts have already gained $800 per contract in just one session. Below is a summary of what was discussed in the chat, followed by a chart showing the performance over the last week of sessions:
Now let’s move on to my thoughts for tomorrows session!