2.6 Market Plan
A little morning blip but all is well as we complete this rotational leg higher on SPY 0.00%↑ so even with a pullback this morning the sentiment (if you read and watched the Sunday outlook) was still bullish. I made a few trades off the open and waited all day on this small crude long (see below) to play out but that was pretty much it.
This market is in stand still mode until some more data Wednesday and knowing that I went to get a quick run in post Euro close and reminded myself of the best trade I’ve made: Moving to Puerto Rico. The time zone alone is 100% better especially when you do this full-time like I have for over a decade - it just gets old being up at 4/5 am to get ready to get going.
The S&P500 head fake today was expected a bit but the dip was bought and it should press on from here. $4920 is support (that area) so with any positive news we press to go back and test $5000, $5012 then maybe get a 1-2 day hard rally.
I got into detail on why this are on $SPX matters to me last night in the premium video and it’s a big deal so this week and the coming are going to matter for how I position non-day trades.
NVDA -
Goldman Sachs came out with an upgrade on NVDA 0.00%↑ today and the pre-market gap up trapped buyers to drop -20 points taking the opening low out to then just reverse. This is called the “TYT” setup: touch your toes - because every time the banks do this you can rest assured it’s for liquidity purposes.
They did it in 2012 when I got my first taste in a large, short at the shop I was at with $APOL - (University of Phoenix) an upgrade that rallied the stock +20% only to see it fall to new lows again months later. They also did it late in 2022 once Carvana hit fresh lows and after I was up a lot: the point is, they’re usually wrong, usually late and NOT YOUR FRIEND.
However, for the day trading playbook/strategies this stock has been on-fire and it will be until it’s not so that trap today was what I talked about last night in the Premium Video. The $650s as seen below traded very well on the trap + ODR reversal in about 30 minutes time - enough to capture that and be out.
Again, this is part of having the Report available: it tells me what is on my list ahead of time so that you can plan accordingly. Most Retail Traders simply don’t operate from that perspective hence the news-trading, following “unusual call flow” or getting trapped on bank upgrades via their TYT pattern.
MSFT -
Same thing and also discussed last night in the report. $412 to $405s pretty much off the open but this was something we came into this week looking for.
This is from a webinar I gave a while ago (will be up on the Landshark Site soon and can watch for a fee) but these are the major approach differences from novice Retail Traders and Professionals.
Crude Oil -
Crude today was a bit tricky - the pit open was weak and we tested the range lows and it was not until mid-day until we regained that range to only drive higher into the pit close. That was decent but the lack of buying pressure to start the day I did not like so I ended up using the QM v. the CL -
We need to hold $7240/$7200 in Globex, a lot of work to do still there.
There’s some European data overnight that is coming out and a Fed speaker tomorrow but we’re long until we’re not.
In The Premium Video Tonight I Cover:
S&P500/Nasdaq/Crude Oil Plan for Tomorrow
Why I Bought TSLA and The Plan
Update for a few day trades tomorrow.