6/5: Daily Recap, Outlook, and Trading Plan
Recap
In this week's newsletter, we go over the recent market parabolic squeeze and how a classic failed breakdown setup caused it. With a move of 100 points, this produced one of the best trades of 2023. We also stress the significance of runners in catching these explosive moves and how they lessen FOMO and the need to chase/over-trade. The purple triangle, which served as the foundation for the initial rally to 4240, has been essential in determining the market's course.
The Markets Overnight
🌏 Asia: Mostly up
🌍 Europe: Up a bit
🌎 US Index Futures: Mixed
🛢 Crude Oil: Up strongly
💵 Dollar: Up
🧐 Yields: Up
🔮 Crypto: Down
Key Structures
The purple triangle was the foundation for the initial rally to 4240 and has been essential in determining the market's course. The blue broadening formation has also been an important target for price action.
Support Levels
Significant levels of support include 4281-85, 4262, 4241-37, 4187-4192, and 4176.
Resistance Levels
Significant levels of resistance include 4304–4306, 4315, 4350, 4366, and 4382.
Trading Plan
Exercise caution when trading in stretched positions and put more emphasis on being responsive than proactive. At support levels, keep an eye out for potential long entries, but be cautious of rug pull risks. At levels of significant resistance, take into account short entries, but be aware that counter-trending entails greater risks.
💪 4282 - 4285 is support
📈 Next minor is 4304, then 4315
📉 Pullback if 4280 fails, then 4262
Wrap Up
Following a significant rally, it's crucial to approach the market cautiously and concentrate on responding to price action rather than attempting to predict the next move. However, it's important to be aware of the risks associated with trading in these extended market conditions. Key support and resistance levels offer potential entry points for both long and short trades.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
In this week's newsletter, we go over the recent market parabolic squeeze and how a classic failed breakdown setup caused it. With a move of 100 points, this produced one of the best trades of 2023. We also stress the significance of runners in catching these explosive moves and how they lessen FOMO and the need to chase/over-trade. The purple triangle, which served as the foundation for the initial rally to 4240, has been essential in determining the market's course.
The Markets Overnight
🌏 Asia: Mostly up
🌍 Europe: Up a bit
🌎 US Index Futures: Mixed
🛢 Crude Oil: Up strongly
💵 Dollar: Up
🧐 Yields: Up
🔮 Crypto: Down
Key Structures
The purple triangle was the foundation for the initial rally to 4240 and has been essential in determining the market's course. The blue broadening formation has also been an important target for price action.
Support Levels
Significant levels of support include 4281-85, 4262, 4241-37, 4187-4192, and 4176.
Resistance Levels
Significant levels of resistance include 4304–4306, 4315, 4350, 4366, and 4382.
Trading Plan
Exercise caution when trading in stretched positions and put more emphasis on being responsive than proactive. At support levels, keep an eye out for potential long entries, but be cautious of rug pull risks. At levels of significant resistance, take into account short entries, but be aware that counter-trending entails greater risks.
💪 4282 - 4285 is support
📈 Next minor is 4304, then 4315
📉 Pullback if 4280 fails, then 4262
Wrap Up
Following a significant rally, it's crucial to approach the market cautiously and concentrate on responding to price action rather than attempting to predict the next move. However, it's important to be aware of the risks associated with trading in these extended market conditions. Key support and resistance levels offer potential entry points for both long and short trades.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
