The first 5 parts in my free series explaining some basic profile concepts is now available at www.pharmdcapital.com. Click PharmDCapital This section and other free material will be added to over time. Scroll down to the “Want a Taste” section to read it.
The full weekly plan and commentary should be reviewed ahead of this post and can be seen HERE. This includes the 3-week box setup that could present some amazing and large trades this week.
With SPY 0.00%↑ and QQQ 0.00%↑ holding their respective 50-day SMAs on Friday and QQQ still holding it’s balance, it was no surprise that futures traded higher first. We had been expecting a return to 5205 this week.
Coming into the week we were looking forward to shorting a lower high to take out last week’s lows if we traded higher first. We were looking for 5218-22 and as high as 5235. However, since futures rallied 60 handles off Friday’s lows, buyers ran out of steam shy even of 5216 which we were looking at for a possible look above and fail of the early morning box setup. Instead, the top of the box held firm and a major liquidation ensued. This time, unlike Thursday and Friday, buyers seemingly didn’t even consider mounting a defense until 5167. By then, however, sellers were able to reload with fresh ammo just under the major weekly level of 5185.75. Remaining trapped below this spot is what led to the ultimate continuation liquidation through last week’s low. These are the situations where I, and any credible trader, stress holding runners. Even a single MES runner for nearly 120 handles is worth $600 if one shorted the top of the box.
I am very much beginning to prepare for tactical longs, and we’ll discuss where/when/how I might consider them in tonight’s post.
Discord Instructions for access (free for paid Substack subscribers) are below
To learn more about how I trade, see the post “What is Trading Doggy Style” Here
-For those that trade SPY/SPX, there is an ES to SPY/SPX converter in Tradingview. See announcements in the Discord.