Morning Session:
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- Early trade setup focused on a long lean with price above VWAP, but David reminded traders that VWAP is a reference, not a hard line.
- The key level in play was the Line in the Sand (LIS) at 5985, with flexibility required for both long and short trades.
- A bearish scenario was outlined, where sustained selling below 5985 targeted the 5965 – 5960 zone.
- Selling pressure increased around 9:58 AM, confirming more liquidation and favoring short setups.
- David identified the market as having a “range-runner” character, meaning price would likely whip back and forth rather than trend smoothly.
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| Midday Caution: |
- Around 1:09 PM, David noted that the best trade opportunities had been in the early morning swings and advised traders to avoid midday chop.
- Traders who missed the morning setups were warned not to press trades during lunch but to wait for the closing rotation or the next session.
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| Afternoon Session: |
- A “2 PM Shake n’ Bake” move was anticipated, suggesting late-day volatility and a potential trading opportunity.
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| Key Takeaways: |
- The strongest trade opportunities were in the early session.
- VWAP was useful as a reference but not a strict boundary.
- The market had a “range-runner” theme, requiring flexibility and quick decision-making.
- Avoiding midday chop was essential, with patience needed for better setups later in the day.
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| Traders who capitalized on the early swings and avoided overtrading midday likely had the best results. |
