TRADE PLAN:10/02 - ES/SPY/SPX
If you missed the earlier blog from today regarding a update, go you go and read it below.
Overview: Listen, the market's playing a game of mixed signals right now. While the weekly momentum is leaning bearish, suggesting we might be in for a bit of a roller coaster ride sideways or even down for a week or two, the daily charts are telling a different story. They're hinting at a possible uptick over the next couple of days.
Key Factors:
Here's the deal: expect a weekly low within the next two weeks.
Keep your eyes on the prize: the magic numbers are between 4245-4211. That's our target zone.
Trade Strategy Suggestion:
Heads Up: Next week's start might be a wild ride. If there's any chatter about the debt ceiling agreement, or worse, a failure to lock one in, expect some serious market jitters.
The Play: Given the market's mood swings and the potential for a weekly dip in the near future, my advice? Sit tight. Wait for the daily momentum to swing back and give us a clear Bull Reversal. I wouldn't bet on seeing that until the tail end of next week. When it does, that's your cue to think about a go-long strategy.
Conclusion: Look, the market's a battlefield right now, especially with the debt ceiling drama in the backdrop. If you want to win, you've got to be smart, stay sharp, and wait for the right moment to make your move. That Bull Reversal we're expecting? Could be your golden ticket. But remember, always play it smart, use your head, and keep an ear to the ground for any news that could shake things up. And if you ever doubt your next move, just ask yourself: What would Haus do?
Initial Observations: S&P 500
12B Price: 4338
Daily Balance (DB) Level: 4332.5
Weekly Balance (WB) Level: 4389.5
Trade Scenarios:
a. Buying Opportunity on Pullback:
If we see a pullback towards the 12B level (4338) or the Daily Balance level (4332.5):
This would present an optimal buying opportunity, as I expect the market to rebound from these levels.
The primary bullish target post-pullback is within the 12B Upper Dyno, ranging from 4359.5 to 4364.5.
If the bullish momentum remains strong, the Daily Balance's Upper Dyno, located between 4379.5 and 4390.75, serves as the subsequent upward target.
For traders considering longer bullish scenarios after the pullback, the Weekly Balance at 4389.5 can offer potential points of retracement or consolidation before aiming for the Upper Dyno between 4534 and 4568.
b. Selling Opportunity:
If the RTH open or consistent offers are situated below 4338 without indications of a bullish reclaim:
The primary bearish objective would be the 12B Lower Dyno, which spans from 4311.5 to 4316.5.
A continued bearish thrust would target the Lower Dyno of the Daily Balance, spanning from 4274.25 to 4285.25.
For an extended bearish trajectory, the Lower Dyno of the WB, between 4211 and 4245, emerges as the principal target.
c. Dyno Reclaim Scenarios:
While navigating within the Dyno zones:
A brief dip into a Lower Dyno followed by a bullish reclaim points to potential long trades, targeting the nearest balance or level.
Conversely, a rapid ascent into an Upper Dyno countered by sellers indicates short opportunities, with goals set for the adjacent balance or level.
Disclosure
Analytical Market Theory LLC is not a registered entity and not a licensed financial professional and therefore is not qualified to give investment advice. Information presented through this application such as calculations, or other social media posts, discussions, information on the website, chatroom, podcast, or through email or any form of electronic communication is strictly our opinion and for educational purposes only. It is not to be taken as investment advice or an instruction to buy and sell any security or influence any investment decision. Trade at your own risk.
๐DO NOT COPY MY TRADES. THIS IS FOR EDUCATION ๐
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