July 15th, 2024

The market is off to another bullish start this week, despite the unfortunate events in the U.S. over the weekend, including the attempted assassination of former President Trump and the loss of a firefighter, which breaks my heart. I don’t think these events would prompt sellers to step in, nor do I think it’s a reason for buyers to step in. Markets have shown they are looking past who the next president is. I don’t believe the market is pricing in a Trump win—I think this market is just extremely bullish and seizes any reason to rally. I don’t see anything political derailing or boosting this market right now. The technicals remain very strong, possibly the strongest tape I’ve seen in nearly three decades in this business.

That being said, we have to move forward and trade the tape that is in front of us. How do we, as day traders, trade this tape?

Look for longs, but be nimble. The momentum is all with the bulls, especially in RTY right now, so I am only focused on looking for long setups in my short-term strategy. RTY is the primary market to trade long at the moment, followed by ES. ES is still in range expansion on my daily charts, so I do expect a new high in the coming sessions, but the risk-reward for longs intraday is a bit tough here and we have to rely on momentum to carry us forward. RTY has ground to make up, and as long as they hold support on my short-term charts, I see them as the opportunity right now.

NQ is boxed in at the moment and I expect a two-way tape, not a runaway bull tape. NQ daily Bollinger Bands are not moving outward and I see a market that can be traded in both directions. If you’re a day trader looking for a two-way tape to trade right now, I believe that’s the NQ/MNQ.

I am fearful there is more chaos to come during this election cycle, but as an eternal optimist, I am positive about the future of this country. We’re in times where people need to calm down, focus on helping themselves and their neighbors. Take a breath, slow things down, do something positive for yourself, do something positive for a friend or neighbor. Everything begins in your household and what you do as an American on a local basis. I pray for all of your success and well-being. Have a successful week of trading.

Cheers, DELI