Trade Plan for 1/6-1/10
Fang formation frenzy
Last week I felt the daily charts all looked moderately bearish to start the week, but also speculated that we could potentially see some rotation into $RTY/small caps futures.
The indices got bearish follow through to start the week and we did indeed see relative strength/rotation into $RTY at the end of the week.✅💰
Specifically I was looking for immediate downside to test my 5996-6002 support area, which we saw on Sunday night before it plunged into support and bounced. From Monday’s daily note:
I closed most of my $TSLA short (from 456 avg entry) at the 383 area I shared the chart with you in the front side of this note last week, but I was more specific for members. 🤑
For precious metals I was a levels based bear once again, but did end up taking the $SI/silver futures ‘last chance’ 29.245 long. The low of the week was 29.200 (slurp). I was neutral for $CL/oil futures, but my take was: bull above 71.32 and that worked out quite well!
Summary of Market Action Last Week:
The indices chop dropped through Thursday and then trended up on Friday during the holiday abbreviated week. $ES/SPX futures and $NQ/Nasdaq futures closed the week down, but $RTY/small caps futures booked a gain and showed relative strength after being a laggard for four weeks in a row.
$GDX/gold miners finally got a relief bounce, with $GC/gold futures and $SI/Silver futures in the green.
$XOP/oil equities outperformed amid a breakout for $CL/Crude Oil futures.
Here’s how last week closed out:
For the week ahead (1/6 - 1/10/25)