Thursday October 9, 2025

Q: What trading concepts are highly recommended in the briefing, and what is advised about taking a long trade when price is at the bottom of the range?

The rule of 'range rules rule' is constantly reinforced, and traders are encouraged to internalize it and trade based on an established range while setting aside their personal bias. When bulls control and price is at the bottom of the range, taking a long trade is considered best.

In Thursday’s AM Briefing, Micros Trader presented a bullish trading outlook conditioned on the market holding above a key technical support level, dubbed the “strong level.” The analysis emphasized the importance of structured range-based trading and cautioned against directional bias, especially given a notable divergence in the Dow. While the broader indices suggest continued upside, the briefing flagged elevated risk at current highs and recommended tactical flexibility, including the use of options. A devotional analogy to David and Goliath reinforced the message that success in trading stems from discipline, structure, and faith rather than leverage or emotional reactivity.

☀️ AM BRIEFING

Opening Remarks

Welcome to the Thursday, October 9th AM Briefing from Micros Trader. Today’s session brings a bullish outlook for the market, contingent on one key technical level holding. The primary message from Micros Trader is straightforward: if price remains above the "strong level," the bulls are in control. However, caution is warranted—there’s divergence in the indices, particularly the Dow, which is not confirming the broader move. This could be a canary in the coal mine.

The guiding principle of the day is clear: "Range rules rule." Micros Trader urges traders to prioritize disciplined, range-based strategies over any personal directional bias. The goal is not to guess the market but to follow the structure as it unfolds.

Market Analysis & Outlook for Thursday, October 9th

The core thesis of today’s AM Briefing is a bullish stance, based on the market holding above a critical support level. If this "strong level" remains intact, bulls remain in control. This is not merely a guess, but a technical structure supported by recent price behavior.

The market recently swept two daily lows and returned back into balance, suggesting the end of a correction and the beginning of bullish control. Unlike past breakouts that were quickly rejected, this time the market is holding in the upper distribution—a shift in tone that Micros Trader highlights as meaningful.

Traders are advised not to adopt a bearish mindset unless price moves back inside the prior trading range. As it stands, there's no structural reason to be short. The expected range projects upward, with a potential 50-point rally still in play.

Key Technical Levels & Overnight Action

The overnight session was notably strong, influenced by headlines suggesting a possible resolution in the Hamas-Israel conflict. Price remained centered around Wednesday’s Point of Control (POC), reinforcing its technical significance.

Strong Level: This is the primary line in the sand. Above it, the outlook is bullish. Below it, risk increases dramatically.

Wednesday’s POC: Price rotated here throughout the overnight session, suggesting it remains a magnet for price discovery.

Expected Range (Upper): Still about 50 points above current price—this remains the projected upside.

Potential Scenarios & "Battle Plan" Trades

Bullish Scenario: A pullback to the top of the previously broken range could offer a long opportunity. A retest and reclaim of the "strong level" after a dip would also be a must-take trade.

Bearish Scenario 1: A firm break below the "strong level" could lead to a sharp move back through the prior range, and possibly beyond.

Bearish Scenario 2: Shorting a strong uptrend is only valid if a new high is made and a specific technical pattern emerges that allows for it.

Cautionary Signals & Risk Factors

Intermarket Divergence: The Dow is not participating in the rally. It’s consolidating in a tight range while the ES and NQ push higher. This non-confirmation is viewed as a potential early warning.

“That’s the canary in the coal mine telling us: be real careful.”

Risk Sentiment: At current highs, every long entry feels risky. The breakout move from Wednesday had the hallmarks of an exhaustion spike. Traders should exercise prudence and avoid chasing.

Foundational Trading Principles

Micros Trader reinforces the importance of trading within defined ranges and putting aside directional bias. The phrase “range rules rule” is repeated throughout the session as a reminder to trade with structure.

“Put your bias to the side. Trade the range when one is present.”

Tactical Reflection: Futures vs. Options

Micros Trader reflects on a missed opportunity from the previous day—a long setup was correctly identified, but a futures entry couldn’t be secured. In hindsight, using options, like a short-dated call or vertical spread, would have allowed participation without needing perfect timing.

This moment serves as a mental reminder that good setups can be executed using different instruments—futures or options—depending on the conditions.

The "David's Trade Plan" Daily Devotional

The Goliaths: In today’s markets, the giants traders face are institutional algorithms, surprise macro news, and fast-moving overnight sessions.

The Temptation: Many traders fight these giants with "swords and spears"—aggressive position sizes and revenge trades. But David didn’t win with brute force. He won with the right foundation.

"Victory comes from the right foundation, not the right firepower."

Micros Trader encourages traders to ground their strategies in discipline and faith—not fear and greed. The goal is to steward one's time, capital, and mental energy well, avoiding reckless trades.

The session ends with a prayer for strength through discipline and wisdom, asking for God’s guidance through volatile markets.

❓ FREQUENTLY ASKED QUESTIONS

AM Briefing Q&A – October 9

Question 1: What specific date and type of event are mentioned for the day of the AM briefing?

A: The briefing is for Thursday, October the 9th. The event scheduled is Powell speaking, but it is a pre-recorded session for the opening of a conference, meaning it is probably not exciting.

Question 2: What trading concepts are highly recommended in the briefing, and what is advised about taking a long trade when price is at the bottom of the range?

A: The rule of "range rules rule" is constantly reinforced, and traders are encouraged to internalize it and trade based on an established range while setting aside their personal bias. When bulls control and price is at the bottom of the range, taking a long trade is considered best.

Question 3: In the context of "David's trade plan," what does the source suggest future traders rely on when facing market giants, and what should they avoid?

A: Victory comes from the right foundation of faith and discipline rather than excessive firepower. Traders should avoid trying to fight the markets with more leverage, bigger sizes, or revenge trading, which are compared to swords and spears.