Trading Room RECAP 4.7.25

Posted on by April 7, 2025

Pre-Market & Open (8:45 AM – 9:15 AM ET)

PTGDavid started the morning with a heads-up on the 4950–4960 zone as a key Pivot Zone to watch on any dips. He welcomed the team with his usual energy and wit, setting the tone early with a mention that “Herb and Marge are panicking,” in reference to retail traders reacting to quarterly statements and possibly exiting positions hastily.

He posted multiple images and chart uploads, including:

  • A zone map to visualize the pivot area.

  • A satirical image titled “I Love the Smell of Panic Carnage”, reinforcing the sentiment that panic-selling was fueling early volatility.

He also dropped a few links from PolarisTrading on X (formerly Twitter), providing real-time macro insights that tied into the morning’s volatility.

Early Market Movement (9:15 AM – 10:15 AM ET)

As the market opened and volume ramped, David provided constant updates:

  • Reported over 1 million contracts traded within minutes.

  • Called out filled targets on CL and NQ setups.

  • Flipped to a buy-side lean around 9:49 AM after observing price action behavior.

At 10:02 AM, traders approached the 5030 level on ES, triggering a sell reaction. David and other traders noted that a rejection was likely, and indeed, sellers stepped in. Around this time, ATRs on the NQ were hitting 70–138 on the 1-minute chart, signaling unusually high intraday volatility.

David encouraged nimbleness and quick decision-making. “Gotta be quick… or get burned jumping over the candle stick,” he quipped, warning traders of the market’s speed.

Headline Whiplash & Midday Balance (10:15 AM – 1:00 PM ET)

A flurry of headlines dramatically influenced intraday moves:

  • Rumor: Trump was considering a 90-day pause on tariffs (except China).

  • Minutes later: The White House denied it as fake news.

  • Then, Trump threatened a 50% tariff increase on China.

This sequence caused stop runs, wild reversals, and a general sense of uncertainty. David highlighted how price briefly reclaimed key zones but warned that these were “snaps and traps” and emphasized the need for hard stops and smaller size, especially in headline-driven tape.

By lunchtime, the market was working on balancing near VWAP and mid-point, with bulls attempting to reclaim prior range highs. David posted a chart titled “Lunch Break” and confirmed the market was stabilizing… for now.

Afternoon Session & Power Hour (1:00 PM – 4:00 PM ET)

Key levels came back into focus:

  • ES 5150 and NQ 17800 marked as critical resistance zones for bulls to break and convert.

  • Around 2:15 PM, ES tagged 5150 and was immediately rejected — David flagged this as the most important level heading into the close.

At 3:50 PM, David reported a MOC (Market on Close) sell imbalance of $4.7 billion, with $4.2B specifically from the NASDAQ. Interestingly, by 3:55 PM, the imbalance flipped to a buy, indicating strong absorption by large players.

He jokingly asked if we were going to “get a ripper closer” — and while the late rally wasn’t huge, it was notable given the earlier chaos. He wrapped with a reminder that bulls “are not out of the woods” and that today was a classic consolidation/balancing day, with tomorrow’s session likely to give more clarity on trend direction.

Trading Educational Takeaways:

  • Pivot Zones Matter: The 4950–4960 zone held early significance. Use prior areas of support/resistance to frame your trades.

  • Price Action > News: While headlines triggered volatility, traders who anchored to price levels (e.g., 5030, 5150) were better positioned.

  • Be Nimble: Multiple shifts in sentiment demanded flexibility — PTGDavid moved from short to long bias quickly and confidently based on evolving context.

  • Headline Tape = Smaller Size: Volatility surged on conflicting reports. Using micro contracts (like MNQ) was a smart move in uncertain, illiquid bursts.

  • ATR Awareness: David repeatedly called out ATR spikes — a great reminder to adjust risk parameters when volatility expands.

  • Mindset Matters: Humor, quick commentary, and community support helped maintain clarity in a chaotic session. David’s Herb & Marge jokes added levity but also insight into retail sentiment extremes.

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