Weekly Outlook & Review
Good afternoon folks,
This week had the first real bear move we’ve seen in a long time. We’ve been trending up for weeks with very few pullbacks. When the market does this, it’s guaranteed to respond violently later on. The bigger it bloats, the harder it falls.
Everyone knows this, but not many know how to trade the move correctly. If you enter as soon as you “think” we’re about to drop, you’ll get burnt many times. Lots of traders tried fading this rally over the past few weeks and experienced that. If you want to catch a drop like the one that happened this week, you need to wait for the right circumstances and factors.
We identified these throughout the week and gained dozens of points from this move. Last week’s projection (below) was based on the 4550 pivot holding or failing.
Here’s what happened this week:
The first large black bar on August 2nd happened afterI posted this plan (notice the subtext - it wasn’t exactly clickbait😉)
Many setups were correctly identified and traded in the daily plans with the help of our highly accurate supply/demand levels.
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.
This week put bulls in an uncomfortable position. We are in an uptrend on the long and medium-term timeframe, but we now have encountered an unusually strong pullback. Bulls will be forced to act quickly this week, or they will suffer a lot more difficulty and downside. The levels I’m focusing on are 4407, 4431, 4446, 4452 (important), 4476 (important), 4494, 4500, 4517, and 4532.
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.
Chart:
This is not a prediction, just a general projection of where price action goes next. That’s all for this week’s outlook. Stay sharp.
- Tradewriter
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.