Market Analysis for 1/2/25
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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.
The location of today’s open made for some very awkward trading so if you got chopped up it probably wasn’t you. My plan was to be patient and selective and frankly I ended up losing my patience and missing a move. We were set to open between last week’s low and our weekly 5979-5982.75 spot where there was quite obviously a strong seller premarket. Last week’s low was 5965 and we were monitoring 65-69 to provide a bit more certainty of a reclaim. This made for a high likelihood of choppy early trading.
We can see that there was a battle back and forth across last week’s low between our 55.25 and 79-82.75 spot.
I personally shorted 5980 twice with the premarket seller at the open and 10am, covering some on the way down and trailing out on runners when sellers failed to defend a lower high. I therefore wasn’t prepared to be short (and was even planning to wait for a dip to get long) when the seller hit the tape again at 10:25 with absolutely enormous size. We then finally saw a lower high defended and the IB low was broken. From there the day was a short but was frankly still a bit awkward because of the importance and strength of some of the levels below the IB low.
Here is why I lost my patience with sellers and I am going to explain why I made this read in a video tonight to follow.
I said this at 9:52 EST. We can see that sellers made an attempt at 9:55/9:56 and failed, again at 10:16 and failed. Look what happened when they finally defended 69/70 from below at 10:40.
It was a great read and I got impatient and missed it. I don’t catch every move, and I don’t always have the patience I need to have. Today was a great example of that. We are all human and anyone who pretends as if they catch every single move every single day is not being truthful. Let’s get into the plan and why I said what I said about 69/70