I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,848 Blog Posts

NASDAQ coming into the week up +40, here’s the Monday trading plan

NASDAQ futures are coming into Monday gap up after an overnight session featuring elevated range on extreme volume.  Price opened gap up Sunday night, pushing up nearly 60 points when Globex opened for trade at 6pm New York. The action was faded lower until about 9pm when we came into balance.  Then around 7am sellers began working price a bit higher.  As we approach cash open, price is hovering up near the highs of 05/21.

On the economic calendar today we have JOLTS jobs openings at 10am followed by 3- and 6-month T-bill auctions at 11:30am.

Last week began with weakness through most of Monday, across the board, except for the Russell was strong.  This major risk divergence was interesting, because the rest of the week was spent rallying hard.  We closed the week on the highs across the board.  The last week performance of each major index is shown below:

On Friday, the NASDAQ printed a short squeeze, ‘letter P’ shaped profile.  The day began with a gap up and drive higher, and while the market went range extension up (normal variation up) it accomplished little more—instead it drifted sideways into the closing bell.  Perhaps most participants took off early to enjoy, weather-wise, at least in the north, what felt like the first real summer weekend.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7484.75 and continuing higher to tag the open gap at 7511.25.  Then the magnet, naked VPOC at 7571 is tagged before two way trade ensues.

Hypo 2 sellers work into the overnight inventory and close teh gap down to 7420.75.  Look for buyers down at the 7400 century mark and two-way trade to ensue.

Hypo 3 stronger sellers reverse much of Friday’s short squeeze, trading down to 7311.75 before two way trade ensues.


Volume profiles, gaps, and measured moves:

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