Good morning traders!
Hopefully you had a phenomenal holiday as this was much needed for me. Last weeks plan gave precise guidance that worked out every day last week.
This week will be loaded with volatility as we have major economic releases.
Before jumping into this weeks outlook + plan, let’s cover what our main thesis was for last weeks.
Last Weeks Outlook
Take a look below at the Value Areas so you will know what I will be referring to for the thoughts ahead. Emini currently sits in the upper value area which like any other we will look for longs at the VAL and shorts at the VAH. As we trade inside this value I expect a move at least into the POC up at 4177. Feb 13- 16 this is the exact area we sold down from before seeing a strong wave of selling to 3880s. I will treat this the same as 4040 where I view this area to hold which looking back seeing the sellers at 4077 POC makes me think they will once again appear here. Of course if 4177s begins to trade I will send out updates with thoughts on overall market. To start the week off we are seeing some sizable gap downs in the stocks given in the daily plan. Part of the selling pressure is due from Oil production cuts which caused a 6 handle gap up in CL.
High and Low of the week were 4177 & nearly 4092 as we opened up below this level to start the week.
Just knowing the levels in the weekly outlook any trader would have been equipped with multiple setups.
One clear selloff from 4177 with two bounces later in the week off 4092.
Many people still aren’t in the telegram and miss out on so many updates every day. Last week we caught every event with right direction as keeping up with all the recent releases and FOMC gives key insights into what events will be volatile in the future.
(Some) Telegram Updates from Last Week
Shortly after sending these updates our 4136 holds the market up after PMI release, which we noted as good, achieving our intraday and weekly timeframe long target.
The next day, JOLTS comes out with another spike up to T1 4162 for +12 handles moving LIS (Stop Loss) to B/E.
If you haven’t already, make sure to read Risk Management - Futures to understand how I manage my trades. In this case and all others once my T1 (1st target) is hit I will always move my LIS up to B/E which locks in profit and takes off all risk on the trade. No matter what I will have a clear head once exited and if holding it becomes easy as I know I will walk away on top of the session.
Going in Short, Coming out Long
Thursday almost caught me with the flush down near 4090s BUT I quickly noted the failure to budge any lower. This with the fact that we had another strong data print, It was going to be very hard to move any lower especially if you see how strong stocks were. Every stock crushed long levels and using eminis long target for the position taken early worked out perfect. Target was 4140 with price reaching up to 4136!
There couldn’t have been a better way to close out the week. With this all being said let’s dive into my thoughts on what we have in store for this week.
