February 7th, 2024 Weakness in RTY. Apologies for the late update – I just got done with my annual blood work and am finally settling down at my screens. The first thing that stands out is RTY’s failure to rally alongside ZN (10 YR), exposing its underlying weakness. Given that RTY’s movement this year has […]
February 6th, 2024 Resilience. By now, we’ve all heard the statistics: the market is being led by the Magnificent Seven, and the rest of the market isn’t doing much. We’ve also all noticed rates continuing to gradually increase, causing us to question if the Indexes would take notice. Additionally, the NQ futures have asset managers […]
February 5th, 2024 10-YR and RTY. Today, I’m still in a ‘wait and see’ mode, as there are a few things on my radar that require close monitoring. Firstly, the 10-YR is nearing a breakout to the downside, which signals higher rates and directly impacts the RTY. If ZN continues its downward trend today, it […]
February 2nd, 2024 Market environments are shifting. I always emphasize the importance of understanding the three market environments: range-bound consolidation, mean reversion, or range expansion. What we rarely see is a tape that oscillates between these market environments, and that’s exactly what I’m witnessing now. The market is experiencing a significant amount of crosswinds, causing […]
February 1st, 2024 Back to mean reversion. Yesterday’s close triggered a new sell zone in ES. I am now looking to sell rallies as long as we have daily closes below 4919, with my target set at 4837. I will be looking to sell rallies intraday and put a swing short position on in ES, […]
January 31st, 2024 Fed Day and End of The Month. Today is very important for a few reasons. First, we get to hear what the FOMC announcement is and what they’re thinking about future rate cuts. Second, we have the closeout day for what I consider the most important month of the year. Third, we’re […]
January 30th, 2024 The path of least resistance remains higher. The market environment is still in range expansion for ES and NQ, and as of today, there are no signs that it is ending. The little pullbacks we have seen along the way continue to be buying opportunities, and I expect that to continue today. […]
January 29th, 2024 The week is filled with events that are out of our control: QRA announcements, FOMC meeting, Big Tech earnings, unemployment data, and possibly a few other things I didn’t mention. When faced with weeks like this, I try not to dwell on these potential market influencers. Instead, I prioritize what I can […]
January 26th, 2024 As we close out the week, we find ourselves in the same market environment as we started. The bulls are in complete control and they continue to defend the 5-day SMA and push towards upward targets (ES-4974/NQ-17,777). The bears keep attempting to pull back the market, but it simply presents another buying […]
January 25th, 2024 Bulls defended the 5-day. Five days ago, we broke out, and I have been watching the 5-day SMA very closely to see if we can sustain above it. Last night, the bears had a chance to pull back below it, but the bulls stepped in and defended it. For now, that 5-day […]