Tuesday October 7, 2025

The October 7 AM Briefing emphasized the continued bullish control of market price action, underpinned by a consistent trend of higher highs and higher lows. Traders were advised to favor long setups, particularly "trap the trader" patterns, while shorting was discouraged except under highly restrictive conditions. A key consolidation zone between 6789.50 and 6758.75 was highlighted as a pressure point for a potential breakout, aligning with the broader bullish thesis. The briefing also underscored the psychological dimensions of trading, stressing the value of “profitable patience” and discipline in avoiding premature or emotional entries.

☀️ AM BRIEFING

Opening Remarks

The current market analysis indicates a strong bullish sentiment. The overarching principle guiding today’s AM Briefing is simple but powerful: bulls control. We’re seeing clear structural patterns of higher highs and higher lows, which strongly suggest a continuation of the upward trajectory.

The Micros Trader emphasizes the importance of aligning with this dominant market flow, discouraging counter-trend trades unless they are approached with utmost caution. A high-probability pressure cooker range has formed between 6789.50 and 6758.75, and it's seen as the staging ground for a potential breakout to the upside. Trader psychology is also emphasized, especially around the theme of “profitable patience.”

Overarching Market Thesis: Bullish Control

The dominant thesis in today’s AM Briefing is that bulls remain firmly in control of price action. This is evident in the persistent uptrend, particularly the repeated formation of higher lows and higher highs. Around the 01:18 mark, the Micros Trader points out the repeated “higher lows, higher lows,” reinforcing this view.

The expectation is that price will eventually break to the north, continuing the current bullish structure (01:35). As a core principle, the Micros Trader repeats the phrase “but bulls control, but bulls control, but bulls control” (03:31), making it the foundation for all analysis and strategy today.

Core Trading Strategies

Pro-Trend Strategy (Long Positions)

The primary strategy is to trade with the bullish trend. The preferred setup is the “trap the trader longs” (03:18), a pattern that has been producing consistently strong results.

A long trade from the prior Wednesday is still running and locking in notable gains, depending on the entry:

Entry 1: +45 points
Entry 2: +63 points
Entry 3: +80 points (02:19–02:48)

Yesterday’s analysis mapped out a clear long zone. Even though the Micros Trader personally missed a re-entry by one point, the analysis proved accurate and satisfying: “beautiful to see the price action play out right” (03:51, 04:21).

Counter-Trend Strategy (Short Positions)

Short setups are discouraged and treated as high-risk trades. The briefing clearly advises: “shorts or counter small, if at all” (00:14, 03:18). If you are going to counter-trade, do so with extreme discipline.

Use one contract to eliminate the temptation to hold a runner (00:14)
Take quick profits, typically 50% of the move — “see money, take money” (00:14)
Always be protective and never escalate risk if price moves against you (07:36, 08:06)

One such disciplined short was planned at 6782 — a previously strong level. The order missed entry by two ticks, and the trade was immediately abandoned. As the Micros Trader said, “I'm out. I'm not begging to be a short there” (07:25).

Price is approaching the 6789.50–6758.75 pressure cooker zone — watch for potential bullish breakout.

Key Technical Analysis and Setups

The "Pressure Cooker" Range

A tightly coiled range has developed between 6789.50 and 6758.75 (10:29), acting as a “pressure cooker.” Price is building energy for a move out of this zone.

Within the upper part of the range, short opportunities can be considered, but only with caution.
Typically, price rotates from the top to the bottom of the range (10:00).
The primary directional bias is still bullish, with the goal to “be long for the breakout” (10:29).

Notable Price Levels and Patterns

6782 is still respected as a key level from prior successful short setups (06:48, 06:56).
Index Confluence: When all major indices (ES, NQ, YM) move together, trade setups become clearer. A recent ES bounce was confirmed by simultaneous upward movement in the Dow and Nasdaq — “makes trading easier when we’re all on the same train” (05:29, 05:59).
London Session Pattern: The London session often begins with a liquidity grab — taking out either the high or low of the Asia session — followed by an aggressive reversal. This setup has been playing out “like clockwork” (08:52).

Volatility Assessment via ATR

An ATR around 2.0 is considered healthy (14:17).
If ATR drops below 1.0, especially between 0.7–0.9, the market is too slow, and trades are typically avoided (14:17).

Cross-Market Overview

Index	Analysis	Status
Russell (RTY)	Made all-time highs for two consecutive days	Bullish
S&P (ES)	Trading in the upper distribution near all-time highs	Not Bearish
Nasdaq (NQ)	Pulled into the Asia high and reversed upward with index confluence	Bullish
Dow (YM)	Showed relative weakness, “strong vomit down,” not near ATH	Mixed / Weaker

Essay Format Questions

What emotion affected your trade today?
How will you respond differently next time?

"Discipline is choosing between what you want now and what you want most."

❓ FREQUENTLY ASKED QUESTIONS

Question 1: What general strategies should traders employ when considering counter trades?

When counter trading, traders should keep full control and only trade small, if at all. The recommendation is to follow the rule of seeing money and taking money, potentially capturing around fifty per cent. If a trader uses multiple contracts, they have the option to keep a single runner contract back.

Question 2: What are the defining characteristics of the current market zone and the prevailing directional control?

The market is currently in a definitive chop type of zone, characterised by making higher lows and higher highs. The zone is most likely expected to break out to the north and continue that move. Bulls are still in control, which is supported by the Russell index having made a new all-time high for two consecutive days.

Question 3: What key risks are associated with trading in the upper distribution and with displaying impatience?

When price is in the upper distribution, traders must be careful going long, as range rules suggest that price typically moves from the top of the range to the bottom of the range. Furthermore, the most expensive trades a person will ever make are the ones they force out of impatience.