Trade Plan for 12/11
It's So Over, Right?
The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to The Week Ahead
Today was a bit tricky, but as mentioned last night we were prepared for two-way trading. We normally assumed that if a prior day’s spike (in yesterday’s case 6060-6062.25) that it is a long. It indeed was . . .at first. We were wary however that this overnight and morning hold of the spike base may do nothing more than offer a lower high short. From last night’s commentary:
After a quick trap below the spike during the Euro session, bulls rallied to the low 70s right into the open. The opening drive was strong and straight back down to the spike. The spike held. This looked promising for bulls. However, the IB high formed right in the middle of the weekly 6072.5-6075.25 range. A look above and fail of the IB high triggered a short which, initially, once again held 6060. 15 minutes before the IB close a passive seller was detected, which gave us more caution (if long) and opportunity (if looking for shorts) for a look above and fail of the IB high.
Once the bid on NQ vanished ES bulls were unable to sustain above the IB high (73.25) and that was it for bulls.
Sellers finally worked through 6060 late in the day and were able to take out last week’s low.
If you have been a patient reader of content above the paywall and therefore made it this far, I offer this consideration for tomorrow as the following commentary from last night still applies:
NQ has been super clean with the levels for quite some time. We are very much monitoring both so it is important to recap.
After holding the weekly 21448-21459 spot overnight, it was able to flip the 491-502 spot to support into the open. This caused a significant rally to the 593-601 spot and then the bid just completed evaporated as mentioned above. The 491-502 spot offered limited defense, but the 448-459 spot offered yet another long. Sellers finally got through here to test the gap from last week. The gap was not completely filled as it held a tricky little spot within the gap, 21340.75-21357.
A reclaim of 21448-21459 would be key for buyers. Another Easter Egg for the patient reader:
We have CPI in the morning and have some very binary trades that will determine if we are long for a new all-time high or if this is a continuation short.
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