Thu AM Briefing Preparing For Our Emini Trading Room 08/08/2024
Preparing ES & NQ Traders
For Our Emini and Micros Futures Trading Room
For Our Emini and Micros Futures Trading Room
TRANSCRIPT:
Good morning, everybody! This should be a pretty short one today, so let's just get into it. "We love because He loved us first." I love that one. "We love because He loved us first." Amen.
Alright, guys, I think this will be a nice, quick session, so let's get right into it. Welcome to AM Briefing number 235, brought to you by MicroTrader.com, where together we trade better.
Tip of the Day
Today, trade your system and stick to it. Your system should work in low volatility and big volatility. Our system was put to the test this week when we were in a land of 16 candles on a three-minute chart, and our system performed well. So, trade your system, know the rules of your system, and stick to them. For example, one of the things that we say in our group is, "Don't counter a parabolic move." That's one of the things that we're going to see on the chart today: don't counter a parabolic move.
News Drivers Today
Today is going to be a pretty important day. Unemployment claims usually don't have much of an effect on the market, but today they might have a big impact. We will be live on Zoom for that announcement. If you're up early enough, get your pre-flight done and pop on Zoom. I'll be there because I want to see the reaction.
Charts and Seasonality
Let's get to the chart after we look at the seasonality. As you can see, August typically has a nice little pullback, and we are certainly experiencing that as well. Now, let's review yesterday.
We had this new week opening gap here, and before we started the day, we had this high timeframe trendline here and the overnight trendline here as well. Yesterday morning, I posted in the group, "Watch Out Below." It was a little fuzzy because I blew up a Discord thing, but I wanted to point that out to my traders before the market opened. Boy, did that prove to be noteworthy.
We came up, finished filling this gap, and had a 30-minute origin that we were discussing. I was expecting the price, because it's been tested a few times, to come in here and us go north. In fact, I took a long here and then shorted the exact same level because it was starting to prove that wasn't going to happen. Once we broke this trendline, we created a backside and went parabolic. While there are places you can go long where the price bounces, you generally want to be on the side of the shorts.
I posted my end-of-the-day chart yesterday, showing two perfectly placed shorts. Playing long here is definitely the harder way to make a living. Once we got underneath the overnight low, I showed this down arrow, and we continued that journey after the close, continuing the ladder down. There were many ladder downs yesterday, taking out highs and pulling right back down into the next origin.
Established Range and Expectations
Let's zoom out a bit and get rid of this trendline. On a 10-minute chart, I would want my traders to note the range we're in, from origin to origin. Price has pushed away strongly from these levels, and despite expecting a break to the north, the polarity pushed it back to the bottom of the range for a 137-point range yesterday. The green area is better for longs, the red for shorts, and if we break below, it could be substantial.
Market Overview
Looking at other indices, Russell is under its 2024 opening. Everyone is in the lower distribution. Keep an eye on the 2024 openings and the April low, which is already on our charts. Respect how you trade ranges, and I believe it will be fruitful. I can't wait to trade with you live.
Green trading, my friends! To learn more about our group, go to MicroTrader.com.
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