Hello Everyone,
Monday February 26th Comments:
As I mentioned to Matt over the weekend, Monday's have more often been down days and today was no exception with the market flushing lower into the close. No change in structure as yet but traders were picking up some longer dated VIX calls (paired with short term VIX puts). This is often foreshadows a change, but with the count incomplete, thinking another push higher still realistic. Cycle guys are looking at a potential turn window around March 1/4th which I will also monitor. A few of the Mag 7 are starting to lose their momentum which also coincides with thoughts above. Project, monitor, and adjust all while following YOUR PLAN.
Tuesday March 5th Comments:
Yesterday, the SPX/QQQ struggled to make much headway with the SPX managing to make a minor new high while the QQQs did not which setup a potential evening star pattern on the SPX which unfolded in a big way. Both indices began with a gap down and traded sharply lower most of the session until a snapback to VWAP the last 30 minutes as ES back-tested 5092. The only thing perplexing is the QQQ structure which I will review tonight. At best, I think the market would only make a minor new high. Tomorrow, we have JP so buckle up.
Caution flag is officially up and one should adjust accordingly.
Administrative Note: Sad news today, for those not aware Matt's father passed away so please allow him some time to grieve.
Please take a moment to look at the trade ideas.
