Weekly Outlook & Review
Good afternoon folks,
This was a stellar week for us. A pullback was expected at the beginning of the week, with many people going short in preparation. Instead, the market kept moving higher. It triggered a short squeeze, leading to higher prices, causing more squeezes. We did get our pullback later in the week, but only after the market rallied ~70 points. Many retail traders were caught on the wrong side of both moves, but we profited hundreds of points. Here’s a recap:
Monday:
Tuesday:
Wednesday:
Thursday:
Friday:
Outlook for Next Week
I day trade the S&P 500 index 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 was a great example of the market doing the obvious in a non-obvious way. Everyone expected a pullback to happen, but no one knew when and got burned trying to call the top. This is why you must only trade what’s in front of you. While the trend was up, we profited. When it stalled and dropped, we profited. This was all because I followed my system and traded what I saw, not what I thought was going to happen.
Next week will set the stage for the next major move. This week washed out both longs and shorts. Ideally, the price retraces to ~4500 before it moves again, as it’s a key psychological level. If the trendline holds, we can assume the move continues. If it breaks, bulls have bigger problems. Levels I’m looking at this week are 4451, 4472, 4489, 4500 (important), 4523, 4558, 4574, and 4597.
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:
That’s all for this week. Happy trading :)
- 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.