PTGDavid provided insightful real-time commentary throughout the trading day, focusing on market structure, key technical levels, and trading strategies. Here’s a summary of his posts:
- Market Analysis and Opening Dynamics:
- PTGDavid highlighted that the market was in a consolidation phase within a larger uptrend, setting the tone for a neutral opening. He identified 5905 as a resistance level for the bulls and 5895 as the “Line in the Sand” (LIS) for the bears. He emphasized the importance of reclaiming these levels for directional bias.
- Intraday Observations and Trade Execution:
- He noted that the market initially showed a long-side bias but experienced a “Look Above and Fail” pattern when bulls couldn’t maintain the bid above 5905. This led to a reversal back to the range’s opposite edge, with price testing key support at 5895.
- PTGDavid frequently mentioned the importance of monitoring NYSE Ticks, which were negative for most of the session, and sector performance, particularly financials (XLF) and technology (XLK), which were unable to support the market.
- Strategic Adjustments and Trade Strategy:
- He provided clear scenarios for traders, indicating that if the price stayed below 5895, the target zone would be 5870-5875. He updated the chat when the lower target zone was reached.
- During the midday session, he acknowledged a slowdown in trading activity, anticipating consolidation leading up to the 2 p.m. period, known for increased volatility (“Shake n Bake”). He reiterated that the primary lean remained bearish unless the 5885-5890 zone was reclaimed.
- End-of-Day Commentary and Closing Actions:
- In the afternoon, PTGDavid noted that the market recovered to the pivotal 5885-5890 zone, converting 5885 to support. He anticipated a less active session until the MOC (Market on Close) period.
- He mentioned a $1.9 billion MOC sell imbalance but observed that it was absorbed, allowing prices to close near the 5895 LIS. He concluded by noting that the bulls successfully bought the dip to the 5870 zone, closing the day with a positive bias.
PTGDavid’s commentary demonstrated a deep understanding of market dynamics, providing valuable guidance on intraday price action, technical levels, and sector influences.