Trade Plan for 6/13-6/17 - Risky Business

With an Overview of Risk Management and Portfolio Construction

Follow @CordovaTrades✨ and collaborator @SLMacro on Twitter and please share if you find our work valuable .

Starting this week I will begin to livestream my hourly $ES and $NQ scalping charts during US regular trading hours on https://www.twitch.tv/cordovatrades so you can view where we are anytime at a glance.  If you find this valuable please let me know and I will try to keep this up as a feature for paid subscribers.👍 Additionally I have added $ZB/T-bond futures as a chart review this week.

Last week’s price action started out with a whiffed attempt to eclipse those holiday and overnight highs from the previous week and then while it hovered around support on Thursday evening before the Friday morning CPI data, the downward momentum from the report continued through all of Friday, with just a brief pause on the next support before failing. Ideally I had planned to buy a dip, if that happened first, and then sell the rip over those highs in the context of an overall bearish market, but the early fumbled rally foiled my plan and was bearish, reverting us back to ‘level to level’ trading. ✅

This week SLMacro reviews his investing philosophy and how he approaches portfolio construction to maximize gains while managing risk.

Summary of Market Action Last Week:

• $ES/S&P 500 Futures, $NQ/Nasdaq futures and $RTY/Small caps futures closed substantially red 🩸 and near the lows of the week, with both $ES and $NQ finishing Friday inside of previously filled gap supports. 

• Precious metals continued to show relative strength to the overall market, particularly at extremes.⚔️  They performed well both early in the week with the market’s upward thrust, and then again on Friday against the bearish backdrop of the CPI data.  For the second week in a row both $GC/gold futures and $SI/silver futures had a wider range taking out traders in both directions with higher highs, but also lower lows. 🕵️‍♀️

• $CL/Crude Oil futures continued higher overall, but upwards momentum did slow down.  It was a choppy trade, but I had conviction and was able to get in a nice crude oil and equity short from near the highs.💰  Since I entered the trade before I originally planned, this week I’ll explain what I was looking at and why I chose to enter the trade ahead of my levels.  

Here’s how the week closed out:

For the week ahead (6/13 - 6/17/22)