Lecture Notes: Market Analysis and Trading Strategy

Introduction

• Jerome Powell's Impact: Recent statement affected markets negatively.
• Video Overview: Discussion on current market structures, potential trades, and strategies for the next trading day.
• Focus Areas: Hourly timeframe structures, tick charts analysis, and trade setups.

Key Market Observations

1. Hourly Timeframe Structures

• S&P SPY and NASDAQ Triple Q's: Previously bullish with new structures forming.
• Range Formation: Lower highs and higher lows indicating a new range.
• Earnings Influence: Upcoming earnings reports could affect market movements.

2. Important Economic Indicators for Tomorrow

• Philly Fed Number: Scheduled for 8:30 AM Eastern.
• TSMC Earnings Report: Before market open, potential significant market catalyst.
• Market Closure: No trading on Friday due to Easter weekend.

Trading Strategy Insights

1. Tick Charts Analysis

• Preference for Tick Charts: Easier pattern recognition compared to time charts.
• Key Indicators: 21 EMA used for identifying trade opportunities.
• Clues on Tick Charts:
  • Strong move down signifies potential retest low and bounce.
  • Range breakout and pullback areas identified for resistance.

2. Trade Setups

• Bull and Bear Traps: Use buyers/sellers momentum for setting up trades.
• Pendulum Swings: Taking advantage of market rotations within a range.
• Add-on Trades: Identifying separation from moving averages for entry.

3. Specific Trade Ideas

• Bull Traps: Set up after strong moves and pullbacks.
• Bear Traps: Anticipated at market lows.
• Measured Moves: Apply on breakout legs for profit-taking and entry setups.
• Retest Trades: Look for double bottom formations to buy.

Considerations for Potential Changes

1. Reaction to TSMC and Other External Factors

• Market Reaction: Possibility of strong moves depending on TSMC results.
• Adjusting Strategies: Based on updates from the White House or other economic indicators.

2. Strategy Adjustments

• V-Bottom Reversals: Use trendlines for entries if strong bounces occur at lows.
• If Market Surges: Look for separation above the 21 EMA for potential buys.

Educational Resources

• Free Trading Classes: Offers detailed strategies on market structure, entries, and exits.
• Additional Learning Materials: Includes examples of bear/bull traps and measured move techniques.

Conclusion

• Final Thoughts: Markets are dynamic, adjust strategies as new information arises.
• Next Steps: Watch for morning market cues and adjust strategies accordingly.
• Join Trade Room: Engage in live sessions for real-time strategies and market analysis.