Market Analysis for 1/7/25

2025 already doing 2025 things

Please see the announcement about the future of Discord access DISCORD PRICING ANNOUNCEMENT To reiterate, if you are a current subscriber and remain subscribed you will not be affected.

The change will take place Monday night.

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.

I also started a new series where we will get into more of the why and how for some of the trade setups we take instead of just straight recaps. The first post in that series can be seen here: TRADE RECAP AND ANALYSIS

We got the bullish scenario overnight into today on SPY 0.00%↑ with the gap and go above the 50sma and the 4-day balance range we were monitoring. Things got a bit wild as the rally had accelerated on news of somewhat diminished Trump tariffs. This was later refuted by Trump and there was a 20 handle pullback in 5 minutes premarket, but by that point shorts were sufficiently stuck (still well above the 4-day balance high) that it didn’t matter. The dip was bought and we saw accelerating covering.

Interestingly, we spotted a big seller show up and start accumulating in the 6050s and even the 6060s. Once the covering was done and the seller had accumulated, the rug was pulled. The afternoon saw persistent selling for the entire afternoon. Still, we remain above last week’s high. We have NVDA 0.00%↑ presenting at CES tonight I believe and a fair amount of data in the morning so the overnight session could be wild. To me, pressure is on sellers to follow through after this afternoon’s sell.