October 25th, 2023

First, I want to explain a little bit about my trading style. As I post this note every morning, you must understand how I trade according to my plan. I’m no longer a scalper, I focus on finding one strong play per day where I can trade directionally. If my first trade doesn’t work, I usually give myself one or maximum two more trades for the day. I prefer not to trade both sides of the market because I’ve found that the odds are against me when I try to pick too many spots in a single day. Now that I’ve explained that, here’s what I see for today’s markets.

Sometimes, it all comes down to one chart for me in determining my trading strategy for the day. And for today, it’s the 60-minute ES chart. The VWAPs for the week are bunched up between 4367-4359, all of the standard deviation lines are flat, and the Bollinger Bands are also flat. This indicates a two-way tape, meaning that the markets are expected to move around in the middle and may not adhere to technical indicators within this range. The outer standard deviation lines range from 4300-4220, outlining the potential range for the rest of the week. With no clear trend for this week, I don’t have an edge, so it’s a no trade day for me.

On a side note, I’ll be on X Spaces today at 3 ET with TraderSZ for our PYT Challenge trading Event Contracts in ES and Bitcoin. I’ll be giving away $500 to the top 3 winners. I’d love for all of you to participate and join us in the spaces. Here’s the link to sign up. https://placeyourtrades.com/challenge-10-25-2023/ I look forward to hearing your feedback from the challenge. Today, keep it small and smart. Avoid chasing anything. See you later this afternoon!