This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
Overnight price action continued to rally from the late day session yesterday and cross above the intraday highs and approach the prior two day’s highs.
From a birds-eye view, price action has formed a multiple day 2X bottom and W-pattern before the overnight price action rallied and broke the neckline. Now price action in pre-market retested the neckline area of the W-pattern and has started to form higher highs and highers lows.
Pre-market Economic news and reports finishing the week with several reports that may start to have an impact on the markets, but trade with caution since price action is still in the all-time highs area.
Pre-market price action on the 5-minute charts has crossed back above the prior day’s highs and with the transition to the beginning of a market cycle phase 2, we already see momentum building heading into the opening bell.
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With price action breaking above multiple day highs, we focused on LONG positions. Took a LONG entry when price action reversed and closed on the opening bell. No follow thru and we closed the trade early with a 1.5 point loss.
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Flag pattern on 1-minute chart with higher swing pivot low and close to the opening bell, so we take an aggressive LONG entry with a market lot (i.e., minimum position sized) to probe. NO follow thru, so we take a 1 point loss.