July 27th Daily Plan
Happy Friday Traders!
It was a wild day yesterday with almost 10 handles of range in the SPY 0.00%↑ total. Even with all the movement, we are opening up around the monthly POC at 454.50. Being a Friday I don’t plan on taking any trades with full size today. Fridays are typically a day to manage for me.
That said here are some things I am looking at.
First up is rotation, comms lead the way yesterday, but the longer term momentum of everything(the chart on the right) is all leading and strong. Real estate and utilities took the biggest hit yesterday but this makes a lot of sense seeing at they are considered safety instruments.
That’s all I have for a scenario analysis perspective. Since I don’t plan on being active in opening trades today I do not have anything on my own watch list.
That said, if you were interested in trading today here are some things I would watch for:
I would watch for SPY 0.00%↑ to retest the VAH around 460 to look for shorts. It worked like a charm yesterday and produced almost 10 handles of alpha.
TSLA 0.00%↑ looks to be putting in a double bottom on the hourly around 255. I would use this as support for a day trade, but would look to see it re-enter the monthly value area over 263ish for a swing.
As always trade safe