Market Analysis for 1/16/25

Another Dead Cat Bounce or is this Time Real?

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

The new update for the PharmD_KS indicator has now been published. It now has both sections broken out for NQ and also has a wildcard ticker that you can use for anything that we may be trading. See the Link here: PharmD_KS Indicator

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

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. A recent update has been made with some additional content.

For today the CPI was of course the binary event with the trades based on the box provided in front of the paywall last night. The breakout move did not lack clarity so there was zero reason to attempt to fade the data print as was emphasized in last night’s plan.

This worked out well for our UPS 0.00%↑ and TLT 0.00%↑ positions which were recently added in the Discord.

Unfortunately for cash hours traders (and really anyone that wasn’t willing to gamble ahead of CPI) most of the move was taken on the print. The action after the open was a bid lack luster and two-sided at times, but with a nice afternoon rally that was really triggered by NQ holding its cash open.

Seller took their shot, but after failing to get back below NQ’s open the buying turned on (both new longs and shorts covering).

We are now coming into some tricky areas on the indices and of course still have to ask ourselves if this is just another lower high or if the bottom is in for new all-time highs.