Trade Plan for 12/13

Box is Still Box. For now.

The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to The Week Ahead

On Tuesday we hit the bottom of my prospective range and rallied off it. Yesterday we hit the top of the range and we have sold off it. My jokes with the subtitles are a reminder to avoid getting bullish into the top of a range and bearish into the bottom of a range.

The overnight action was a bit weak and we ended up leaving an open gap from yesterday’s close. This is a sign of weakness from buyers. The action today was mostly apathetic until we started getting some trade war news and bond selling escalated a bit. This morning’s data was also really quite bad (mildly stagflationary).

The open was bearish so we were looking to trade lower first and maybe set up a long. The action was quite bad so even though yesterdays ES low was 72.5 I wanted to see a look below and fail of yesterdays SPX low which translated to roughly 6068 on ES. The low was 6067.5 and produced a nice 20 handle long.

The action remained quite bad but the next decent trade setup was a sweep of the overnight data high that failed our 88.5-90 spot. The wick was taken out by a single tick and there was at least some decent volume into it but it was still a rather lack luster moment. The reversal worked, however, and made for a decent trade.

The weekly is in balance and I will characterize the daily as a 9 day balance. The break from this range will determine the next move.

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. I’ll will be adding an update to this with additional content soon.