July 25th, 2024

Slow things down and focus on your next trade. When we get busy in the markets, people often get caught up in more opinions or search for more information on the ‘why’. Less is always better. Your best trading will happen when you can slow things down, even when everything around you is speeding up.

As for the markets right now, I see momentum favoring the sellers, but let’s not forget it’s still a bull market. I never get too excited about being short. This selloff may end up being called a ‘correction’ (a term I hate), but nonetheless, we’re in a pullback phase with range expansion in NQ and ES that I have no interest in fading.

How do we as day traders navigate this market environment? Keep it super simple: sell the rallies using your short-term strategy. I will focus on ES and NQ for shorts and see no reason to look for longs yet, not even for quick scalps. That time will come, just not yet. RTY is still a sideways tape, and there is no clear direction at this point.

Right now, it’s about staying very focused on the next trade and not getting too far ahead of ourselves. Keep it small and don’t overtrade.

I will be live on Develop Your Edge at 10:30 ET today trading the Bond/Treasury markets. I think this trade is pretty decent right now for two way tape traders and I’ll explain why in the livestream. Here is the link if you want to hop on the live: https://www.youtube.com/live/KmXBHUUFbNI?feature=shared

Cheers, DELI