SPY/ES for 9/11
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The grind higher on SPY 0.00%↑ has continued though the intraday movements have been quite volatile. This is a function of the indices getting closer and closer to supply from last week, so we get strong selloffs and then monitor for continued buying pressure nears the lows. We have had a buy program in the tape this week ever since the afterhours forced selling on Friday. The buy program remains active on dips, for now. I would caution my free subscribers that often these programs will use data as exit liquidity so IF we see a rally on data that gets sold and then suddenly dips aren’t getting bought like they have, then it would be a bit of a warning sign. On the flip side, one benefit to bulls here is that volume on data can also have the benefit of clearing supply rather quickly. Any trapped longs from last week waiting to sell at breakeven may get their exit on a data spike. If the dip buy response continues in a constructive manner after supply is cleared, then bulls may mean business. We will plan for both scenarios.
Today was a rather fruitful day across all sessions and for both sides. We were monitoring the 5472-74.75 range and 5462s for potential dip buys. I was hesitant to trust 72.74.75 but it worked during Asia for 10 handles. The overnight low was 5462.5 and rallied nearly 40 handles into the open.
From there, however, we got a look above and fail of yesterday’s high which was one of the primary trades from the plan due to yesterday’s inside day (inside of Friday’s range).
I personally took this short as it was the trade in front of me at the time and things were quite bearish at the time with banks getting sold hard. At 10:04 EST I posted that I was quite bearish and we sold off hard during the 10:05 and 10:10 candles.
I posted covers at 72, 62.5, 56, and then near low of day actually based on NQ hitting 589. NQ 584 is/was a major line in the sand for me today and we could have (still could) gotten ugly if we had built volume below there to end the week. I generally take 1 trade a day if I can and that was it as my trailing stops on the small remaining runners hit. If I can get a 40 handle trade in a day and get my European subscribers a 40 handle trade while I’m sleeping, then I completed my job description for the day (That one is for you Solo)
As mentioned, with a binary catalyst we will certainly be prepared for both directions tomorrow and I will have upside and downside targets for either way we go
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