Weekly Outlook & Review
Week of July 31st, 2023
Good afternoon folks,
We had yet another great week with dozens of points of alpha, despite the choppy conditions. A decent-sized pullback was expected this week. Instead, we got sideways action, mostly stuck in a 50-point range. Many were bagged because of this, but we profited. Here’s a quick recap:
Outlook for Next Week
I trade the S&P 500 index daily and use supply/demand levels as my main strategy. I focus on a handful of core setups within these levels (found here) which typically appear 1-3 times a day. I take one or two trades a day, targeting gains of 10-30 points. My objective is to maintain consistency and leverage it, rather than trying to get as many points as possible.
The market failed to execute a clean pullback this week. Instead, we hovered sideways and got lots of fakeouts. Not even FOMC was enough to change direction. At the beginning of the week, we opened near the bottom of our range. It seemed like we were going to fall lower until we failed to break through key levels, instead triggering bounces and short squeezes.
At the end of the week, the opposite happened. We were moving at the higher end of the range and failed to break above key levels. These provided us with excellent reversal setups, as you can see above. Next week’s action depends on whether the uptrend holds or not. We have a few warning signs already, so bulls can’t allow the trend to fail… or more trouble comes. The levels I’m focusing on are 4486, 4500, 4522, 4534 (important), 4557, 4586 (important), 4598, and 4618.
Since we day trade, we don’t have a weekly bias. We reset it every day. We will trade whatever setup presents itself, bear or bull. Trade setups, projections, and intraday levels are found on paid substack, as well as supply/demand education so you can trade self-sufficiently.
That’s all for this week. Stay sharp.
Disclaimer: Investing in stocks, bonds, futures, options, and other securities carries significant risks. Some or all capital may be lost. With leveraged instruments, losses may exceed initial capital. Past performance of a security does not guarantee future results. Any content from this newsletter should not be taken as financial or investment advice, but for informational and entertainment purposes only. This newsletter simply shares my personal opinions and notes. Consult with a registered financial/investment professional. This newsletter and its authors are not licensed financial/investment professionals. By reading and using this newsletter, as well as any other publications, you are agreeing to these terms.