Weekly Outlook & Review
Good afternoon folks,
We had a stunningly bullish week as the market rallied a massive 200 points off its Friday low. It was a huge squeeze that put many shorts underwater. Moves like this within such a brief timeframe don’t happen too often.
We captured dozens of points this week from what I outlined in the daily plans. We caught most of the move up and also some of the pullbacks in between. Here’s a 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.
For next week, there are a few things to note. First, it will be a four-day week because Monday is Labour Day. Second, we are in September, which is a seasonally bearish month. Over the last few years, almost every September has been a red month. The ones that were not red were ranging or weakly bullish at best. Seasonality is not the ultimate determinant of where the price moves, but it wouldn’t be wise to ignore it.
We’ve rallied nearly 150 points this week, ending any bearish ambitions to drop to 4300 by the end of August. We usually get a cool-down period after this type of move. I’ll be focusing on the 4500 level, and how well it holds this week. If it holds, this rally continues for another 40-50 points at least. If it breaks, we might be looking at a steep decline of 60-100 points.
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 the paid substack, as well as supply/demand education so you can trade self-sufficiently (subscribe button below). I released a new post yesterday, the complete supply and demand strategy - part two.
Chart:
This is not a prediction, just a general outlook 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.