Jul 05, 2022
2 mins read
Good Morning all we started off 4th ofJuly with a fireworks display of buying that ran us up all the way to 3857. After the run up however we never found any second stage of buying at those levels and stalled around 3850. I said in the Microefutures.com discord I would like to see us accept at 3865 to see more buyers potentially step in this did not happen and just like in cinderella the clock struck midnight (well 2am est) and the buyers above 3850 were trapped. Inventory began to correct to the downside and flushed VWAP and now writing this at with approx 90 mins to open we are testing the ON low and 3800.
So lets begin with our Morning Questions
Where are the T2 High/Low? We are in the Middle of T2 range so can be a choppy trading session
Where are the Previous Days Highs/Lows, Half Back, Value High and Value Low? We will use Friday's session for Previous levels since Monday was holiday. We are in the Middle of Friday's session as well so we could be very choppy during first few hours of open session
Where is Volume POC from previous session? Where is TPOC? VPOC is above us for now up at 3825.50 while TPOC is down around 3784. We may Chop around between both in the session today
Where did we close previously are we above or below the close? We are below the close which would mean we are now net short from Friday's session
Has Overnight (Globex) corrected inventory? Globex looks to have corrected inventory from 3857-3840 down to 3813-3800. We would need to see 3800 hold or we could break lower.
Are we pushing near the Highs/Lows of the overnight session? We are at the lows of the overnight session
What shape are the Profiles P shape (short covering), b (Long Liquidation/ Position Building? Globex has the similarities to a double distribution profile which could tell us if we can't transact in the upper distribution then more downside to come
Are we above VWAP or below it? Below VWAP at 3826.50
Plan for the day:
Looking at the Macro view of the chart we are currently in a 3 day balance yet again. And globex poked our heads over the 3842 mark. If we can get some buying to step into this market I would like to see transactions take place back up at 3832, and up at 3865. This will tell us that supply for the time being is shut off. Failing to stay above 3800 is another key I am looking at if we start to fade down away from it then I will be looking for 3783, 3775, 3763.75, 3738.50 (which would break our swing low)
We will always trade what we see as we are not long time holders but react to the orderflow that comes into the market
Key levels: 3865, 3842, 3832, 3811, 3800, 3783, 3775, 3763.75, 3738.50
Trade Safe, Use stops, have a great trade week......