November 8th, 2023

The cream rises to the top, and that really is the story for 2023. Nasdaq remains the outperformer and upside leader, while the S&P sits in the middle. Meanwhile, the Russell struggles to break free from its current state. This environment is our reality, and we must embrace it. What does this mean for us as day traders?

NQ is in bull mode, and I only trade it long. ES offers a two-way tape, allowing trades on both sides (though I still favor the long side). RTY also offers a two-way tape, but with a slight inclination towards the sell side. The market tells us the environment, and it’s our responsibility to listen.

Today’s plan: NQ is my focus on the long side. As long as it sustains trade above 15,330, I look for small long positions to ride the wave. If we can’t hold 15,330, then 15,200-15,150 comes into play, where I can be a more aggressive buyer. Daily upside targets are at 15,900-16,000, but I’ll use my 3-minute opening range strategy with RTH VWAP and 3 standard deviations to guide position trimming and risk management.

ES is in a tricky spot. Both support and resistance on the daily chart are being respected, making it the opposite of Rodney Dangerfield right now. I’m watching 4,404 resistance as the key pivot to the upside. A move above and a hold above it could potentially bring 4,430 into play today, which I believe will act as resistance. If we can’t surpass 4,404, then it’s right back down to 4,393-4,385 for a key test for the bulls, where I’ll be looking for long positions. Failure to hold that area puts 4,355-4,350 in play, and I’ll start looking for shorts.

RTY is a no-trade for me at the moment. I’m waiting to see how it trades within the 1,747-1,737 zone. A breakout above or below this range will provide us with some clarity of direction. Above 1,747, we could see a move towards 1,773, while below 1,737, we might see a decline towards 1,719. Be cautious of false breakouts in RTY right now and avoid chasing it.

Gold and oil are also on my radar right now. Intraday, I’m looking for shorts in gold, aiming for a possible test of 1926 in the upcoming sessions. Key resistance for gold is 1986-2003. If there are any rallies up into that area, I’ll be a short seller.

As for oil, it could be heading for a test of 72 in the upcoming sessions. I consider 72 unfinished business in CL, so I’ll be a buyer on a swing basis if we hit 72. Don’t rush in at that level; wait to see how it trades. Once we have a better idea, I’ll get in from there. You never know how far these markets can go when they’re trending, so let them test the price before we jump in.

Keep it light and tight, my friends! Cheers, DELI

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