Market Analysis and Trades for 5/29
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 5/24
After yesterday’s liquidation break (on NQ in particular) we saw a second wave liquidation during the Asia session. We had clearly defined edges based on volume profiles and the plan was to fade the failed breaks of those edges. For NQ these edges were 30110-30129 and effectively yesterday’s 29877 low.
The early overnight session saw a failed push through 30110-30129 ultimately resolving for 30+ handles to the overnight low which held the prior 2-week balance high nearly perfectly. This triggered the LBAF of yesterday’s low which offered two opportunities overnight into premarket. Sellers defended 30110-30129 at the open which made for a nice trade to the short side but buyers stuck a higher low and were finally able to rip through 110-129 with continuation. From last night’s plan:
I was personally less interested in shorts today given the overnight action but the short at the open worked for nearly 200 handles in a straight line.
ES was effectively the same. The market is framing higher on all timeframes. We have still not met my minimum requirement for triggering a meaningful pullback. That will end, but for now bulls are still in control.
Paid Content Below or in the Discord