Market Analysis for 12/31
And That, Ladies and Gentlemen, is What an A+ Setup Looks Like
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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 big trade for today took place overnight which is a bit unfortunate for cash hours only traders. I will say we have a number of members who don’t trade futures but will trade leveraged ETFs on Robinhood just the same. It definitely is one of the benefits of a Robinhood account for non-futures traders. If anything, it allows one to get a hedge in place against another account that doesn’t have near 24-hour trading.
This was the trade:
We can see that futures opened on a drive higher, looking above and failing 6033.75 immediately. The rest of the night was a choppy grind lower followed by a more aggressive sell once 6000-6003 was lost. There was no reaction at Friday’s low, a minimal attempt from buyers at last week’s low, and cash hours opened on a massive gap down. There was little to do but take profit at key areas on the way down.
We saw covers start to come in (mine lol) on approach of minor demand 5916-5920. This sits on top of a much more critical area for buyers to hold.
From there everything looked great for buyers and many rocket emojis were posted on social media. I wasn’t impressed with the buying at the lows, however. I think we saw a ton of covers and I saw no real sign of meaningful reaccumulating from high time frame longs.
Indeed, we saw a passive seller step back in to defend just inside Friday’s range where buyers were trapped (supply)
The close was sold quite heavily and I will focus much of tonight’s commentary on my interpretation of that.
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I would take a look before the significant price increase in 2025. It looks like he has added quite a bit of content and value.