Pre-Market Trading Plan and Live Session

Introduction

• Pre-market plan sent out before market opens.
• Focus on S&P 500, particularly level at 5740.
• Plan to observe market behavior at specific levels.
• Translate pre-market plan into live session.

Key Levels and Strategy

• Level 5740:

  • Significant support overnight.
  • Watching for a break with aggressive selling to go short.
  • Target range for short: 5722 to 5714 (no support/demand below).

• Bullish Scenario:

  • If 5740 holds and market breaks above 5770, plan to go long.
  • Potential targets: pop up to 5785 or even 5800.

Trading Approach

• No market bias; respond to market signals at levels of interest.
• Emphasis on volume patterns and structure.
• Decision to take action based on market behavior at key levels.

Live Trading Session Highlights

• Up $117,000 in 30 minutes.

• Importance of not having a bias; adapt to market conditions.

• Bearish Strategy:

  • Avoid shorting blindly; wait for confirmation of weakness.
  • Use breaks to confirm selling pressure before shorting.

• Bullish Strategy:

  • Reclaim above 5740 can lead to bullish moves.
  • Watch low volume areas for potential support and resistance.

Trading Execution

• Long position initiated at 5736.5 after reclaiming support.
• Target VWAP (Volume Weighted Average Price) initially at 5746.
• Adjusted stop to break-even; target adjusted to 5754.
• Closed position at 5754 due to resistance.

Summary and Reflection

• Importance of not forcing trades; wait for set-ups to align with analysis.
• Flexibility to switch from bearish to bullish based on market signals.
• Achieved high risk-to-reward ratio.
• Recap of successful trade setup and execution.

Conclusion

• Successful trading day; emphasis on market adaptability.
• Encouragement to seek market freedom through disciplined trading.
• Final recap of strategy and market observation for the day.