iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,085 Blog Posts

NASDAQ up near ATH amid major tech earnings, day after trend day ;-) here’s the Thursday trading plan

NASDAQ futures are coming into Thursday with a slight gap down after an overnight session featuring elevated volume and normal range.  Price was balanced overnight, balancing along the upper-half of Wednesday’s range for the entire Globex session.  At 8:30am durable goods, advance goods trades balance and initial/continuing jobless claims data came out better-than-expected.  As we approach cash open, price is hovering in the upper quadrant of Wednesday’s range.

Major NASDAQ mover Facebook reported earnings last night.  $FB shares are +1.5% in pre-market trading.

Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 7-year Note auction at 1pm.

After the bell today we have earnings from Google and Amazon.  These are very likely to be NASDAQ movers.

Yesterday we printed a trend up.  The day began with a gap down that buyers quickly drove higher at the open.  After closing the overnight gap there was a bit of consolidation/energy build before a second strong leg higher in the afternoon which was accented during settlement by strong earnings reports.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 8037.  From here we continue higher, up thorough all-time high 8051.75 before two way trade ensues.

Hypo 2 stronger buyers drive up to the 8100 century mark before two way trade ensues.

Hypo 3 sellers press down through overnight low 8000.75 setting up a move to target 7975.50 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Washington DC noise, Facebook earnings after the bell, here’s the Wednesday NASDAQ trading plan

NASDAQ futures are coming into Wednesday gap down after an overnight session featuring extreme range and volume.  Price worked lower overnight, erasing about half of Tuesday’s rally before coming into balance.  Robert Mueller is back in Washington DC, testifying, but the markets do not appear to be affected.  As we approach cash open, price is chopping along Tuesday’s midpoint.

On the economic calendar today we have Markit manufacturing/service/composite PMI data at 9:45am, new home sales at 10am, crude oil inventories at 10:30am, a 2-year note auction at 11:30am, and a 5-year note auction at 1pm.

Major tech juggernaut and new money creator Facebook is set to report earnings after the bell.  This is likely to be a NASDAQ-mover.

Yesterday we printed a neutral extreme up.  The day began with a gap up beyond the Monday range that sellers quickly drove down into.  Sellers closed the overnight gap before discovering responsive buyers (responsive relative to Tuesday’s open, initiative relative to Monday’s close).  Price chopped along, below the midpoint for most of the morning before going range extension down by a few points.  This formed a sharp excessive low and ushered in strong buyers for the rest of the afternoon who eventually pushed us neutral then continued to make a new 5-day high.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7983.75.  This sets up a move to tag 7998 before two way trade ensues.

Hypo 2 stronger buyers tag 8000 and sustain trade above it, setting up a fresh all-time high and open air rally.

Hypo 3 sellers press down through overnight low 7925.25 and continue lower, trading down to the 7900 century mark before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ near last Friday’s high, here is the Tuesday trading plan

NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on elevated volume.  Price worked higher overnight after being in balance until about 3am.  As we approach cash open, price is hovering near last Friday’s high.

On the economic calendar today we have existing home sales at 10am followed by a two year note auction at 1pm.

Yesterday we printed a normal variation up.  The day began with a gap up and push higher to tag the naked volume point of control from last Friday.  Initiative buyers were then seen defending the 7900 century mark which set up a second rotation higher, closing the market near session high and overall printing an ‘inside day’ with price being contained inside of the prior session’s range.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through last Friday’s high 7974.25.  Look for sellers up at 7983.75 and two way trade to ensue.

Hypo 2 stronger buyers rally up through 8000 and continue to explore all-time highs.

Hypo 3 sellers press into the overnight inventory and close the gap down to 7926.50 before continuing lower, down through overnight low 7921.25.  Look for buyers just below at 7917.50 and two way trade to ensue.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ begins the week up a quick +40, here’s the Monday trading plan

NASDAQ futures are coming into the last full week of July (the week after OPEX) gap up after an overnight session featuring extreme range and volume.  Price worked higher overnight, and as we approach cash open prices are hanging around in the lower quadrant of Friday’s range.

The economic calendar is light today.  Later this week we will hear earnings from Facebook, Google and Amazon.  Today we have Bank of Japan’s Kuroda speaking to the IMF in Washington at 11am.

Last week began slow, with a drift through the early part of the week, with indices marking time near record highs before seeing sellers step in during the second half of the week.  There were signs of strong responsive buying Thursday and Friday morning before sellers pressed prices back down to weekly lows on Friday.  The last week performance of each major index is shown below:

On Friday the NASDAQ printed a trend down.  The day began with a gap up into Tuesday’s range.  Sellers drove down at the open, closing the overnight gap up in short order then continuing lower throughout the morning.  A bit of responsive buying took price back up to the daily midpoint.  Sellers stepped in and defended then mid which triggered a liquidation down to a new low of the week.  We ended the day at the lows, down inside the 07/09 range.

Heading into today my primary expectation is for sellers to be active ahead of 7900 to set up a move to close the overnight gap down to 7843.75.  From here we continue lower, down through overnight low 7826.25.  Look for buyers down at 7820.25 and two way trade to ensue.

Hypo 2 buyers gap-and-go higher, sustaining trade above 7900 and trapping Friday afternoon sellers.  This trigger a trend reversal, with price trading up to tag the Friday naked VPOC at 7919.75 before two way trade ensues.

Hypo 3 choppy conditions, with price staying in a range between 7900 and 7840.

Levels:

Volume profiles, gaps, and measured moves:

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Regaining routine

We all slip up sometimes, which is fine.

I like helping people I care about, and people I care about have needed me to be a bit more hands on these last several months.  At some point, about when the heat dialed up into the mid-80s, I stopped putting my best effort into the Sunday Strategy sessions, skipped a bunch of morning trading reports, and also broke away from several other wellness routines (exercise, diet, etc).  Again, this is fine.

All of these mechanisms, or routines if we’re humanizing it, were established over the years to check me before I do something selfish like emotionally trade.

I have lost so many US Federal Reserve notes to emotional trading, mostly during my hot-headed 20s, when I was more than a little obsessed with making money.  Wanting something so bad and forcing it usually doesn’t go well, ask me how I know.

Anyways, it doesn’t feel good to break routine.  Its like when you’re full of pizza, but you enjoy the taste of it some much that you ram another piece down and then you’re sick for the next 18 hours.  I feel the same sick kind of way when I break routine, and that tells me to be cautious on all fronts—with relationships, with business decisions—everything.

I don’t trade when my research doesn’t feel good or when I plum skip it, I can’t afford to waste my resources anymore.  Truthfully, I couldn’t back in my 20s either but that lesson took some pain to really take root.

So hopefully this week I can dial back in.  I’m not sure yet, but temperatures are on track to drift down to more comfortable levels, and the people I care about are getting back on their feet.  But who knows what sort of fuckery lies ahead.  So, as always, TBD, and we’ll be taking it one day at a time here on the old RAUL blog.

Raul Santos, July 22nd, 2019

Exodus members, the 244th edition of Strategy Session is live.  I think the NASDAQ Transportation index paints an interesting picture, plus there is little else to go on, algorithmic or trading model-wise, so it’s about all we’ve got in terms of observable bias.

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System update, weekly plan, solid quote, all around decent post with a bad title

Model remains bullish.  It has been bullish for the last four weeks.

Here’s the Executive Summary from this week’s Exodus Strategy Session:

I. Executive Summary

Raul’s bias score 3.88, medium bull*.  Expect price to consolidate at/near record highs, with any sizeable directional moves on the week being faded back near the mean.  Watch for the third reaction to Wednesday afternoon’s Fed Beige Book to provide direction into the second half of the week.

Watch for Netflix earnings Wednesday after-market-close and Microsoft earnings Thursday after-market-close to potentially provide tradable volatility in the late-afternoon, especially on the NASDAQ.

*extreme Rose Colored Sunglasses [e(RCS)] long bias triggered, see Section IV

The Sunday summary are the broad brush strokes I make heading into the week.  I know where the market likely wants to go, and I make my first few broad swipes on the proverbial blank canvas.

The quote on the Strategy Session comes from slave-born Greek philosopher Epictetus, and it reads like a compacted ‘how-to trade’ manual:

“First say to yourself what you would be; and then do what you have to do.” – Epictetus

That’s all wer’re doing over here folks—planning, trading, and refining our craft.  There is nothing fancy about this blog.  Come Monday, if it is the will of the gods, I will write up a trading plan then go to work trading it.  Again Tuesday and Wednesday and so on, then next Sunday a blank canvas and some new brush strokes.  Nothing to it but to do it.

Hope you all have a strong week of mental fortitude and physical strong cock-edness.

RAUL SANTOS, July 14th, 2019

Exodus members, the 243rd edition of Strategy Session is live, go check it out!

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Summer Friday coast session, here’s the NASDAQ trading plan

NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and volume.  Price worked higher overnight, reclaiming the Thursday midpoint and continuing a bit higher.  As we approach cash open, price is hovering in the upper quadrant of Thursday’s range.

There are no economic events today.

Yesterday we printed a neutral day.  The day began with a gap up and slight move higher, probing to a new record cash-session high but not to a new record high, which was set during Wednesday night globex.  Aftermaking the higher price fell lower once, then rallied back to more highs (RE up) before sellers stepped in and drove price RE down and into a neutral print.  The 7900 century mark was a wall and we rallied back to the midpoint by end-of-day.

Neutral.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7918.75.  From here we continue lower, down through overnight low 7911.75.  Look for buyers again down at 7900 and two way trade to ensue.

Hypo 2 gap-and-go higher, trading up through overnight high 7943.25 setting up a run to probe above record highs 7963.25 before two way trade ensues.

Hypo 3 stronger sellers trigger a liquidation down to 7846.25 Tuesday gap before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Back to record highs, here’s the Thursday NASDAQ trading plan

NASDAQ futures are coming into Thursday gap up after an overnight session featuring elevated range on extreme volume.  Price worked higher overnight, trading up to a new record high before settling into balance.  At 8:30am Consumer Price Index data came out better-than-expected and initial/continuing jobless claims data came out mixed.  As we approach cash open, price is hovering in the upper quardrent of Wednesday’s range.

Also on the economic calendar today we have Powell’s semiannual testimony to the Senate at 10am followed by a 30-year bond auction at 1pm.  Also, the only other Fed member who seems to move the needle, President of the Federal Reserve Bank of Minneapolis Neel Kashkari is set to give opening remarks at a town hall in South Dakota at 5pm.

Yesterday we printed a normal variation down.  The day began with a gap up that saw us begin the day just below record highs.  There was a buying spike in the first hour of trade that made new record highs before sellers stepped in and worked us range extension down by a few points.  However, this down move discovered a strong responsive bid and we spent the rest of the day chopping along above the midpoint.

Heading into today my primary expectation is for sellers to press into the overnight inventory and close the gap down to 7928.50.  From here we continue lower, down through overnight low 7920.  Look for buyers down at 7900 and two way trade to ensue.

Hypo 2 buyers press early on, trading up through overnight high 7963.25 setting up a run higher to tag the 8000 century mark before two way trade ensues.

Hypo 3 stronger sellers trade down to close the Tuesday gap down at 7846.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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Powell speaks ahead of House testimony, NASDAQ spikes higher, day after trend opportunity already captured

NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume.  Price was balanced for most of the overnight session, marking time above Tuesday’s midpoint.  Then around 8:30am something Fed Chairman Powell said creating a buying reaction that saw price spike about 70 points to a new all-time high.  As we approach cash open, price is hovering at record highs.

On the economic calendar today we have Powell’s testimony to the House Financial Services Panel beginning at 10am.  Crude oil inventories are due out at 10L30am.  There’s a 10-year note auction at 1pm followed by FOMC Meeting minuets at 2pm.

Yesterday we printed a trend up.  The day began with a gap down below Monday’s range. Sellers briefly probed below last Tuesday’s low before discovering a sharp responsive bid.  Buyers then began a campaign higher, filling the overnight gap then counting higher to close the Friday/weekend gap.  We closed near session high.

Heading into today my primary expectation is for the higher time frames to duke it out.  This looks like wide rotations in both directions before buyers ultimately break away higher and tag 7950 before two way trade ensues.

Hypo 2 sellers press into overnight inventory, erase 8:30am spike higher and continue lower, down through overnight low 7811.25 setting up a tag of 7800 before two way trade ensues.

Hypo 3 stronger buyers tag 8000.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ starts week with modest gap down ;-) here’s the Monday trading plan

NASDAQ futures are coming into the week gap down after an overnight session featuring elevated range and volume.  Price drifted lower overnight then found balance inside of Friday’s range.  As we approach cash open, price is hovering in Friday’s lower quadrant.

This is a busy week for Fed speak, with several key members scheduled to speak along with Fed Chairman Powell set to testify at the House and Senate Wednesday and Thursday, respectively.  Today we have 3- and 6-month T-bill auctions at 11:30am followed by consumer credit at 3pm.

Last week kicked off with a big gap up that was sold into for most of Monday, but sellers were unable to erase the gap before bidders took action.  Tuesday was mostly flat but there was clear strength under the surface.  This ultimately lead to a late-Tuesday spike that that followed through clean into the 4th of July.  Then Friday we opened gap down and buyers spent most of the day working it higher.  The last week performance of each major index is shown below:

On Friday the NASDAQ printed a neutral extreme up.  The day began with a gap down below Wednesday’s range (markets were closed Thursday for 4th of July).  After a brief two-way auction sellers stepped in and worked price lower, briefly pressing the market range extension down before discovering a strong responsive bid.  Buyers then pressed neutral and drove price higher but were unable to fill the overnight gap.  There was some selling late into the settlement period.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7851.  From here we continue higher, up through overnight high 7863.50.  Look for a fill of the Wednesday open gap 7889.25 before two way trade ensues.

Hypo 2 stronger buyers tag the 7900 century mark before two way trade ensues.

Hypo 3 sellers press down through overnight low 7808.25.  There is a battle at the 7800 century mark which eventually gives way to lower prices.  Look for buyers down at 7772.25 and two way trade to ensue.

Levels:

Volume profiles, gaps, and measured moves:

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