Tuesday July 8, 2025

In Monday’s AM briefing from MicroTrader.com, traders were encouraged to stay cautious amid a light news day dominated by tariff concerns. The prior session delivered a rare double distribution trend day down, with a mapped-out 15-point short ultimately playing out after a 20-hour delay. Emphasis was placed on proper ladder counting and magnet levels, with one trader's execution used as a successful example of strategy and runner management. Despite the red day, a 50% retracement and market behavior signaled underlying bullish control going into the current session.

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📄 TRANSCRIPT

Opening Remarks

Welcome to the AM briefing video presented by microtrader.com, where together we trade better. Good morning, everybody.

This week's scripture is James 1:12: "A man who endures trials is blessed because when he passes the test, he will receive the crown of life that God has promised to those who love Him." That “H” is capitalized—not referring to you, but our Lord and Savior Jesus Christ.

Today’s tip: keep a runner back for those rare bell-to-bell and multi-day runs. If you had gone long two weeks ago and kept a runner behind the RTH low each day, you’d be holding a two-week runner in a cash account. The beauty of a cash account is: there are no rules.

Essay Format Questions

Which day had the clearest structure?
How would you rate yesterday in terms of clarity, and did you take advantage?

Pre-Market Announcements

I’ll be live today 15 minutes before the market opens on the ES chart. If you want to join us, that’s as close to a free trial as it gets.

It’s another super light week and an especially light day. Tariff headlines are likely to dominate, so proceed with caution.

Yesterday’s Setups Review

Let’s do a deeper dive into yesterday’s core strategy setups. If you were on the Sunday live stream, we mapped out the short at 15. That trade didn’t trigger until nearly 20 hours later—but it finally did.

What do you do? You wait. That was the mapped-out short.

When we opened, it was ugly. Honestly, I said in yesterday’s AM briefing, maybe don’t trade Monday at all. Let it shake out.

But we ended up getting a rare double distribution trend day down. You just never know.

Trade Example: James' Short

We had two advanced core strategy shorts, and I know James took one. I’ll use him as today’s example.

When he was in the trade, I had given three magnets. The first magnet was for the mapped-out short. Once that was hit, the second magnet became the new week opening gap—specifically, the bottom of it, which was Friday’s close.

If you had multiple contracts, you could’ve taken some off at that second magnet and kept a runner toward the single prints—the ultimate mapped-out target. That was all shared in yesterday’s AM briefing.

I treat shorts differently than longs. I don’t usually do multi-day holds on shorts. For shorts, I play perfect chess for rare bell-to-bell days. Yesterday was one of those rare days.

System-Based Entry Criteria

This core strategy short entry was the final short per my system—not just the core strategy but also my ladder count logic. I tend not to short after the third ladder.

Here’s how I explained it to the group: you could short here with a 1–3 point stop depending on entry. That would’ve worked well. After that third ladder, I told the group: no more shorts for me; I’m just watching.

We hit our first magnet, and then came a long—basic core strategy—but it was a loss.

During Sunday’s open, I warned: don’t get stubborn with longs. We were only mapping shorts. That long setup came during NY lunch with a 15-point tariff candle. No sugarcoating: full loss.

Managing Longs and Context

I didn’t take the 15-point short because I was prepping for the AM briefing. Mentally, though, I was still trading that idea. I often avoid counter-trades when mentally committed to an earlier idea.

That mental discipline can save you. For example, if you’re short, you don’t even consider the long that turned out to be a loser.

We honored the trendline all day. Longs were counter-trend. I wasn’t looking for them until we hit my lower magnet. I did try to enter long down there, but it missed me by a tick on the lower time frame.

Retracement and Market Control

We retraced 50% of the RTH session. It didn’t look like it, but it happened.

Using the fib tool from high to low, the 50% level got hit. That told me bulls still had control. Bears may have had the ball, but they were still on the bull side of the court.

That’s why last night’s battle plan trades were all longs.

Evening Review & Planning

In last night’s battle plan, I wrote: “Finally, a proper red day! Woohoo! Beautiful.” We mapped the 15 short precisely in Sunday’s plan.

Proper execution and focus on the single prints target could’ve delivered a 50-point move, as discussed on Zoom. I’m saying: no new shorts now. That trade already played out.

Caution with longs, too. It’s complex here. Mapping was tricky yesterday—patience is needed.

I’ve shared thoughts on structure and potential entries below.

Market Structure & Overnight Session

I was looking for a deeper push down, but it didn’t happen. Instead, we broke back over the trendline. That was a tradable long setup.

But things don’t always align. I don’t like entering during Asia’s opening candle—low conviction.

We ran back up. That’s what happened.

Double Distribution Day Note

Important: yesterday was a double distribution day. That means auction → single prints → another auction.

Put that single print level on your chart. It often acts as a magnet—not a bounce level.

Overnight Session Review

Overnight action was clear. We returned to the new week opening gap and hovered.

Am I excited to trade here? No. It’s not an edge.

Final Thoughts

Last night had a couple of good aggressive long opportunities. But it’s psychologically tough to go long after a sharp short.

Reminder: I don’t like to short after the third ladder. Typically, there are five to seven ladders on short days. That got us down to the single prints yesterday.

Worth tracking: five to seven ladders is common on shorts. On longs, you might see 12–15.

Current Market Status

NQ, we retraced the whole day, now back at the halfback. Nothing exciting.

No news today. Could be a boring trading day—but who knows?

We’ll be live this morning to map and take our trades. But I’m not excited to trade in the middle of yesterday’s range.

Have a great day, everyone. Stay green. Visit microtrader.com to learn more.

TRADING SESSION FAQ

Q: What is a double distribution trend day, and how should traders react to it?
A: A double distribution day features two distinct auction zones separated by a stretch of single prints. Traders should note the single prints as potential magnet areas rather than bounce levels.

Q: Why is the ladder count important when evaluating short setups?
A: Ladder counting helps identify exhaustion points in a trend. Most short trend days complete within five to seven ladders, making late entries after the third ladder riskier.

Q: Why avoid entering counter-trades while mentally committed to a setup?
A: Entering counter-trades can compromise focus and discipline. Staying aligned with a primary trade idea helps reduce impulsive losses and maintain structured execution.