Thu AM Briefing Preparing For Our Emini Trading Room 04/18/2024
TRANSCRIPT:
Welcome to the AM briefing video presented by microtrader.com, where together we trade better. Alright, good morning traders. It's Thursday, April the 18th. So, I just published a video showing yesterday's trades, really meant for my members. So, if you're a member, I encourage you to go watch that. There's a lot to say today. First of all, let's look at each of the indices here on a weekly chart. You'll see that ES is down 5.3%, DA is down 6.12%, NASDAQ is down 6%, and Russell is down nearly 10%. So, what is the purpose of all that? Well, nothing goes in a straight line forever, and there is going to be a violent, in-your-face rip-it-off short squeeze eventually. And every day, I'm going to remind you, the risk of short squeeze is high. The risk of short squeeze is high. There's an awful lot on this screen here that we're going to discuss. So, this was this RTH low. This level was still within the RTH low. This day was still within the RTH low there. Okay, so we are still balancing. We pushed a little bit here, and this was a highly nuanced level that ES had to hit. We are in the most perfect location if this thing wants to squeeze. When it squeezes, you are either long or flat. If you have to remove yourself from the computer, if you want to counter-trade, just shut it down and walk away. Remove yourself, okay? It's that serious. You do not short a short squeeze. I don't care how far this thing goes up, you don't do it. There is a set of rules we have in our group of when you can start to short, but it's no time soon on that move. So please, please, if this thing gets up there, be careful. Here's the first milestone we've got to get over, 97. Okay, eyeballs are on it, bull bear line. And then we've got all of these highs up here with just yummy, amazing liquidity just begging, "Please come get me, please come get me." And so, got to be careful there. So, I'm going to move this cannon over a little bit because here's this 30-minute parabolic trend line. By the way, let me squeeze this in. The primary 30-minute trend line is way up here. We're still in the parabolic. So, if we get back over this 27, I still say, "You better watch out, squeeze is on." We get above this, careful with shorts above. And I would even put the same thing here, don't be shorting. But if we get above this, I would certainly stay out of the way. Could we have a reaction in this area against this strong range and the strong level? Absolutely. But if I was going to counter that, that might be the first place I would put my eyeballs. We break above that, maybe bring the eyeballs up in this area. And if you're waiting to see a breakdown, you've got to see evidence of breakdown. Maybe now. What I would love to see today, I would love for us to come and grab this liquidity here. I'm certainly long, looking for it to do a liquidity grab and break back in. I'd love to see that. And we'll trade as price is presented. We are cognizant of trend. We're cognizant of trade location. And the risk of short squeeze is high. That's why yesterday, I only took longs. Yes, the correct play was probably shorts. Not probably, it was. I know one of my traders, he just took shorts all day or in the morning and had 100% win rate. I took longs and had a 100% win rate. It bounces both directions. You could take them all if you wanted. But my narrative is still risk as short. Short covering is high. Risk of short covering is high. Risk of short covering is high. And you'd better respect that. And what you'd better not do is counter that. Now, perhaps yesterday, the play was we had few shorts on the way down. You take those shorts. If you get stopped out, you get stopped out and you reanalyze trend. There's nothing wrong with that. And just because I'm not going short or I'm not going long, does it mean you can't? The levels bounce both directions. I'm just trying to provide narrative. And when I say things like this, risk of short squeeze is high, I promise you, on the day where that rips, people are blowing accounts because they're countering it. They forget. And I want to drill it into your head, we are in that environment. We also came to a very significant level here, pushed through it. That's where I went long and had my 20R runner. How many of those do you need in a day? One, you're done. Thank you, I'm out. So, can we get back over this strong range? You can see how many times it was tested and then it tested it again, then strong flush. That was beautiful, beautiful. And what do you do? You're either short or you're flat. You wait till the next level and you trade the next level. There's another high probability trade around the corner. To me, this is nothing but just a little bit extended. This just a little bit. We're still right here under it. What's going to happen here? Then this would be the big magnet. And then if we get above that, watch out. If you'd like to trade with us live, check us out at microtrader.com. Stay green, my friends. And to learn more about our group, go to microtrader.com.
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