Thursday July 24, 2025

In today’s AM Briefing, Microstrader.com emphasized the importance of mental resilience and disciplined execution in futures trading, supported by a spiritual framework and structured journaling practices. Market analysis focused on the ES contract, highlighting range breakout strategies and second bounce entries as key tactics for the session. The speaker identified crucial price levels—yesterday’s point of control, the halfback, and value area low—while advising against top-picking during strong uptrends. With multiple indices near or at all-time highs, traders were reminded to follow price action over prediction and maintain bullish bias until daily closes indicate otherwise.

📚 RESOURCES

▶️ Free "Futures Foundations Course"

▶️ Become A Member: ES MES Futures Trading Room

▶️ YouTube Community Updates

▶️ Trader Meditations: Journaling Software for Futures Traders

📄 TRANSCRIPT

Opening Remarks

The morning briefing opens with a spiritual message to set the tone for the day, drawing from 2 Corinthians:
"Therefore we do not give up... Even though our outer person is being destroyed, our inner person is being renewed day by day."
This verse reinforces the importance of mental resilience and personal growth, especially relevant for traders dealing with uncertainty and stress.

Resilience and Mindset for Traders

The "Tip of the Day" centers on rest and recovery, particularly tailored to those involved in mentally demanding work like trading. The speaker notes, "The best way we can rest is doing something physical and active—walking, working out, anything like that." Conversely, for those engaged in physical labor, rest should take the form of brain-based activities like reading or painting. This contrast highlights the importance of recharging in a way that balances mental and physical demands.

Essay Format Questions

What system rules are you struggling to obey?
Which are the temptations of your choice?
Have you broken that rule this week—the one rule that you're really, really working on?

Market Analysis and Trading Strategies (ES Instrument)

This session focuses heavily on strategy for trading the ES (E-mini S&P 500), described as a "long base instrument."

Range Rules and Battle Plans

The speaker explains how to identify market ranges:
"Price typically will make a move and come in and it'll start doing this bouncing stuff here and you go, 'Okay, I think we're establishing a new range.'"
From this foundation, the battle plan aims to catch the breakout, especially to the upside:
"For me, because ES is a long base instrument, I am looking for this trade here—because at some point it's going to come here, it's going to do this, it's going to get over that range, and it's going to go, go, go."

Core Strategy Trades and Additions

Two core strategy trades are showcased, specifically the "second bounce level" covered in the Core Strategy Academy. This is an entry point when price dips back into a previously established range and then bounces.
For traders with cash or prop firm accounts that permit overnight holds, the idea of a "perfect ad"—an addition to the position—is introduced. This addition is best placed when there's clear momentum continuing in the trade’s direction.

Three key levels for the day: POC from yesterday, Halfback, and Value Area Low.

Current Market Sentiment and All-Time Highs

The broader market is showing strong bullish momentum:
"What are we doing? Up, up, and away."
The ES, NQ, and ENQ have all made new all-time highs. Even the Dow (YM) made a new all-time high, though "barely." NQ and ES are still targeting their respective highs.

Avoid calling tops—wait for confirmation under a daily low before shifting bias.

Trading What’s Presented

The group is trained to trade what’s presented, not what they hope will happen. Even though the speaker's personal bias was toward a short, they took the long trade because that’s what the chart offered:
"The long is what was presented, and that’s the trade we took. Day green, my friends."
This reinforces the principle: "I have to trade what's in front of me."

Long-Term Trend Perspective

Even with the potential for a pullback, the uptrend remains intact.
"Until we close under a daily low—nothing has changed. The train is up and away. Choo choo. Off they go."
The speaker underscores that a pullback does not equal reversal; the bull trend is active until proven otherwise.

❓ FREQUENTLY ASKED QUESTIONS

Q: How do traders, who primarily engage in mental work, effectively rest and recharge?
A: For traders, whose work is mentally demanding and often involves high-pressure thinking, the best way to rest is through physical activity. This contrasts with individuals in physically demanding jobs, who might rest by engaging in mental work like reading or painting. Engaging in activities such as walking, working out, or other forms of physical exertion is recommended to help clear the mind and recover between intense trading sessions.

Q: What are the key news drivers that traders should be aware of today?
A: Today's news drivers include unemployment claims, which will be released one hour before the market opens. Following the market open, there will be PNI data 15 minutes after, and new home sales data 30 minutes after. Traders should remain alert for these announcements as they can significantly impact market movements.

Q: What is the journaling prompt of the week, and why is it important for traders?
A: The journaling prompt for the week encourages traders to reflect daily on the system rules they are struggling to obey, identifying specific temptations and instances where they might have broken a key rule they are working on. This practice is crucial for self-awareness and discipline, helping traders to identify patterns of behaviour that may hinder their success and work towards consistent adherence to their trading plan.

Q: How does the concept of "range rules" apply to trading, and what is the typical price movement within a range?
A: Price typically moves into a range, bounces within it, and then eventually breaks out. For a long-base instrument like ES, the strategy focuses on anticipating a breakout above the established range. The pattern often involves price moving out of the range, pulling back in, and then making a decisive move over the range to continue its trajectory. Traders look for specific entry points, such as "second bounce levels" within the range, in anticipation of this breakout.

Q: What is the "battle plan" for trading ES, and how was it demonstrated in a recent live example?
A: The battle plan for ES trading focuses on identifying and executing trades within and breaking out of established ranges. In a recent example, a range was mapped out on Monday night, and a "battle plan trade" was identified within it. Traders could have entered a long position at specific "second bounce levels" within the core strategy. The trade proved successful as the price eventually broke over the range, demonstrating the effectiveness of holding positions through minor pullbacks when trading in accounts that allow overnight holding.

Q: What are the three most important price levels for traders to monitor today?
A: The three most important levels to watch today are the "pock" (point of control) from yesterday, which serves as a first warning shot for bulls; the "halfback" level; and the "value area low." These levels provide critical insights into potential support and resistance, helping traders gauge market sentiment and anticipate future price movements.

Q: What is the current market sentiment regarding all-time highs for major indices, and what is the prevailing trading philosophy?
A: ES, NQ, and YM have recently made or are close to making new all-time highs, with Dow making a new, albeit narrow, all-time high. There's an observation that a pullback might occur after all major indices hit new highs, as this can liquidate positions. However, the prevailing philosophy is to not "call tops" or attempt to short the market prematurely. The focus is on trading the established levels as they develop, and until a daily low is decisively closed under, the upward trend ("train is up and away") is considered intact.

Q: Why is it crucial for traders to trade what is "presented" to them rather than sticking to a preferred trade?
A: While a trader might have a preferred trade setup (e.g., a short position), it is crucial to trade what the market actually presents. If the preferred setup does not materialise, but a different opportunity (e.g., a long position) does, the trader must adapt and take the presented trade. This highlights the importance of flexibility and reacting to real-time market conditions rather than rigidly adhering to preconceived notions, even if another trade initially offered seemingly better profit potential.