Weekly Trading Notes 08-13-23 | bullish or bearish

Brief Trading Notes For Sunday morning Quick Read.

Price Action Key Observations

• We trade /ES mini futures, which track the $SPY index. No matter the circumstances /es could not close below 4470s

• No breakouts or breakdowns

  • This leaves us one option… trade the tight range. Therefore we shorted 4550s last week down to 4460s, and we got bullish over the weekend (on Friday at 4470 again).

• Tight range that has been traded back and forth over the last few days.

• $TSLA and $MSFT are two companies that could lead the market.

I like to trade 10-15 points toward 30-40. When there aren’t 30-point days, I don’t trade it. This is how I manage my execution.

To understand how we trade, read THE POWER OF $SPY 

Earnings and Data

With earnings and CPI data which came is finished, next on the agenda is Powell and the Federal Reserve, which doesn’t come until September. In my opinion, this means stocks could float a tad higher into the resistance of 4610s. The biggest discussions will be rate hikes. As we watch the market unfold, search for large supply and demand zones.

In this approach, traders believe that areas with strong supply or demand imbalances indicate potential turning points in price trends. These areas are often visualized using charts with support and resistance levels, helping traders decide based on the interaction between buying and selling pressure within the market.

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KEY TIP

Never forget the market runs in cycles.

Trade safely,