Market Analysis and Trades for 2/5/25
SPY QQQ
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The weekly post and video for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead
Be sure you have read the Trading Doggy Style Starter Kit. I will be adding to this over time, likely first focusing on example executions. Trading Doggy Style Starter Kit.
Today was effectively all about ES 5989.5 for me. The overnight action was once again rather volatile. After gapping at the open just below our 6070-6073 spot, futures sold off all night. When we trade higher first and fail, it often requires patience in waiting for the right dip. The session was straight down, clearly on a missing to fill the single prints. If you are not familiar with single prints (you’re missing out) see the starter kit above. Once the single prints were filled (we traded 2 handles lower into our weekly level) futures recovered and began an uptrend into the open. Looking at the below picture once can see it is likely reasonable to carry these spots forward over the next two days. The single prints sat just above the Sunday overnight high and Monday’s opening drive high.
The NQ action was perhaps more interesting to me today and I believe is incredibly important the rest of the week. This is an RTH only chart which eliminates the noise of the overnight session. From the weekly plan and PharmD_KS indicator levels:
We can see that once 21340-21367 was reclaimed on Monday (futures had gapped well below it) we saw higher highs and higher lows up to 21672-21694. Today’s high was 21694 to the tick. I would certainly carry forward these two spots at least:
Wednesday has the potential to change the course of the rest of the week. We just had AMD 0.00%↑ and GOOGL 0.00%↑ earnings. Neither were received particularly well. We also have ADP jobs (nowhere near as credible as NFP in the eyes of the market but still relevant) and more importantly we get to see what Bessent does with his first Treasury Refunding Announcement. Let’s get into how we will play it.