Trade Plan for 7/18-7/22
I Got the Power
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Last week was a tricky week for markets because while the weekly candles looked quite bullish closing at the highs, they also closed at the pivotal resistance I noted. I took a slightly bullish bias for the week, meaning that I was looking to buy dips. The first major pivot to buy was $ES hitting my 3756 support pivot. I bought it there Wednesday morning (the low was 3752), and then closed most of it throughout the day (the high was 3834), because as I had noted in the video, it was a ‘high risk’ trade there. Thursday we dove deeper and while $ES and $NQ were both below supports, $RTY was the last index to hit its support. I saw that sentiment was very bearish, considered that if the market was going down I’d have lots of space to flip, and so I decided to take the long on $RTY at that support (1682 weekly/1685 daily) and then took the $ES/$NQ longs as well once they flashed back above supports. 💰💰💰
I maintained a bullish outlook on oil, but suggested a conservative approach waiting until it got above resistance to take the trade.
This week I have an ‘all or nothing’ theory on price action across indices, metals and energy I will share. SLMacro profiles battery company Enovix $ENVX.
Summary of Market Action Last Week:
$ES/S&P 500 Futures, $NQ/Nasdaq futures and $RTY/Small caps futures gapped down and didn’t tick much (if any) higher than their weekly opens declining substantially before a strong late week bounce. All closed slightly red this week, with $ES being the only one to have made a lower low week over week, but also closing the least down. $NQ and $RTY formed inside candles for the week. All 3 remain below resistance. 💅
Precious metals and $GDX (gold miners) continued falling without a lot of bounce. No respite yet again for metals bulls. $GDX filled a gap left in April of 2020.
$CL/Crude Oil futures declined again making a lower low week over week. There was another pretty good bounce from the new low, but it doesn’t look as resilient as the previous week. $XOP (oil equities) were also red on the week, but showed relative strength with a higher low from the past week.
Here’s how the week closed out:
For the week ahead (7/18-7/22/22)