Market Analysis and Trades for 12/3
If you are looking to join the Discord (now separate from the newsletter) please see here: JOIN THE DISCORD Please email help@pharmdcapital.com if there are any technical issues. Plans/levels will be posted in the Discord so the Discord option includes Substack content but a new Substack subscription does not include Discord access.
Be sure you have read the Starter Kit, including the free section even if you’re a paid subscriber. Trading Doggy Style Starter Kit
The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. It can be found here Market Analysis for the Week of 11/30
Today was absolutely incredible action inclusive of the overnight session, but a lot of traders likely got chopped up in the afternoon, I’m going to lead with what I feel to be an important lesson in capital preservation. This type of day doesn’t play out often, but it is super critical to recognize when it does.
The morning on ES was a very clear broadening formation, inclusive or taking out the IB low (twice actually) and the IB high. A “good” high and a “good” low were in by 11:30. Once I then see a lower high AND a higher low (white arrows) I am completely done for the day. I’ll set an alert for the “internal” high and low and only after one is taken out will I consider a trade. Everything else is by definition inside chop (the boxes are intended to represent composite candles). Yellow is inside of white, and the index is going nowhere.
The LBAF of yesterday’s low (always cash hours unless otherwise specified) put in low of night in the weekly 6809.5-6812.5 range.
Buyers then failed twice above yesterday’s high in the weekly 6857-6864 range
Neither side has demonstrated control over 6841-6844 and this week’s VPOC sits in that range (generally not a great area to initiate a trade).
While ES is consolidating in a tight range, NQ is not and it is causing a bit of conflict here.
Paid Content Below or in the Discord