SPY/ES Plan for 8/22
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First a quick update on Bitcoin. So far it is doing exactly what it is supposed to. Perhaps it has tested your patience but our high 56k entry could not have been more precise and there has been zero sweat to this trade. I’ll likely take small amounts of profit at 64k and 67k but mostly I plan to let a core position run as far as it will run.
The weekly plan should be read and the weekly video should be watched prior to reading this post. Weekly Plan
So far, the private weekly video from this week has played out perfectly and I’ve included a portion of it here MidWeek Recap
Today ended up more of the same on SPY 0.00%↑
Grind higher→liquidate→Buy the dip→ repeat. This grinding choppy action to the upside will only end where there is a deeper liquidation of longs that takes out a prior day low. Thus, we must remain patient and avoid chasing rips, while instead lurking to buy these liquidations. I would have preferred we see some further weakness on this morning’s jobs revisions - even if just a trap - but the pattern of higher highs and higher lows has continued.
For today we were aware that if sellers could not find traction below 5613 that it was a long. We added a trade prior to 13s printing in the Discord as we had an opportunity for a nice long on the look below and fail of the IB low (first 60 minute low). 5613 was later tested (5613.5 low of day) and price resolved nearly 40 handles higher from there.
Many of you may be bearish. As of now, there is nothing bearish in price. Sellers have a LOT of work to do to trigger any kind of meaningful reversal.
We have jobless claims in the morning and the market awaits chair Powell on Friday. The weekly planned discussed the possibility that managed money may need to chase this rally and it would appear they likely have. We’ll be selective and nimble again on day trades tomorrow.
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To learn more about how I trade, see the post “What is Trading Doggy Style” Here