July 26th, 2024

This morning’s data was a non-event, and we go back to the regularly scheduled technical analysis. As I have been mentioning lately, this is a two-way tape that will have bullish momentum days and bearish momentum days. Today could be a bullish momentum day as the overnight low occurred right on the Globex open, and we haven’t looked back since. This could be a daily candle that just stays green and grinds higher.

If the sellers can turn this day around, then I think it could get really ugly on the close. I’m not sure I see that happening, but it’s possible.

Also noting that Rates did come off this morning, and I think that likely helps RTY, but has a minimal impact on ES and NQ.

*How do we as day traders approach this market environment? *

I am on the sidelines today. This is a tricky tape on a Friday afternoon in July. I don’t see where I have an edge on a day like today. Sometimes you just have to acknowledge that you don’t think it will be clean, and you’re better off watching than participating.

Follow your short-term strategy and just keep it small. This is not a tape that leans in a direction for today’s trade, and it’s about protection, not prediction.

Next week Place Your Trades is hosting a week-long Predict the Close challenge. You’ll be given $500 in simulated buying power daily to purchase Event Contracts to predict the close on the futures products of your choice. The top three traders with the highest account value at market close on Friday 8/2 will win a 3-month GoCharting subscription.

Link to the challenge: https://placeyourtrades.com/07-29-2024-predict-the-close-challenge/

Wishing you all a wonderful weekend! Cheers, DELI