Market Analysis and Trades for 6/11
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. Link to Market Analysis for The Week Ahead
SPY 0.00%↑ continues to make daily higher highs and higher lows following the breakout from the 3-week balance even though the breakout has been a bit sluggish. This action is no real surprise given the summer trading environment as mentioned in the weekly plan:
After a wild overnight, both ES and NQ looked below and fail their prior day cash hours low. NQ did so again during RTH while ES did not. I have been a bit more focused on NQ as it seems to be trading more cleanly. We were monitoring 21731-21740 to produce the LBAF of yesterday’s RTH low and it didn’t disappoint. Low of night was 21732 and the RTH low was 21742.75.
I was hoping to see some hedging flows come in today to loosen up range a bit. There was a sequence in play that could have seen NQ come down to the 630-650 range and ES back to 5987.5 and possibly 5970s. We did see those hedging flows come in but the LBAF on NQ along with the 6004-6008 range on ES terminated the sell.
Nothing has yet changed. We make a new high, see some decent passive selling (profit taking from longs), a liquidation of late longs, and a buy the dip response. We are far from meeting any of my minimum requirements for a trend change. Until then, we can expect a continuation of this general sequence which favors longs with very select short opportunities to be treated as rentals.
We do have CPI tomorrow and surely some additional trade related news.
Paid Content Below or in the Discord