At 8:56 AM, PTGDavid highlighted that the session marked Cycle Day 2, suggesting bulls had a chance to halt recent selling and stabilize the market. However, he noted that such an effort would need to be significant due to prevailing “Risk-Off” sentiment. Overnight, bulls had managed to maintain bids without printing new lows, which he suggested may have trapped shorts and created underlying bullish pressure.

By 9:34 AM, he indicated that bulls had early control of the market around the Price Control level of 5012.25. Soon after, he posted a bullish scenario, targeting the 5065–5125 zone, and noted that the first target of 5065 had already been hit by 9:49 AM. He authorized “buy lean dips” and reiterated that the Open Range would serve as a key support zone.

At 10:25 AM, PTGDavid confirmed the day was unfolding as a “Normal Cycle Day 2”, characterized by balancing and consolidation. He emphasized VWAP and Open Range low levels as crucial support areas. As price chopped within range around 10:45 AM, he shared a humorous “chopping wood” GIF to reflect the lack of directional momentum at that time.

At 11:55 AM, he reiterated that the day had become a textbook example of a Cycle Day 2 consolidation and mentioned he was stepping out for a lunch meeting.

The calm didn’t last long. Around 1:19 PM, a major news headline hit: Donald Trump announced plans to raise tariffs on China to 125%. The reaction in the markets was immediate and extreme. PTGDavid reported the markets were going “absolutely bat shit,” and others in the chat noted a 170-point one-minute bar—a massive spike in volatility. Still on a call, PTGDavid commented that he had no active positions but was shocked at the market’s violent reaction.

By 1:30 PM, he quipped the action was like the “OK Corral”, and labeled the move as the “Penultimate TTB” (Trump Tape Bomb). He humorously speculated China might release the “COVID-25 Kraken,” reflecting the high drama and uncertainty of the moment.

As price soared, PTGDavid and others tracked the rally closing in on prior highs. By 2:05 PM, he reported that NASDAQ was up over 10%, the biggest one-day gain since 2008. The move had shattered expectations, and PTGDavid remarked, “Just another day at the trading office.”

Later in the afternoon, he observed a Market on Close (MOC) Buy Imbalance of $4.5 billion, which helped the market finish at session highs. He shared a final end-of-day screenshot and expressed astonishment at the magnitude of the move, noting the $4.8 trillion in market cap increase, nearly 20% of U.S. GDP in a single session.

To close the day, he shared celebratory images and quips like “Green (Greed) is Good!” and “EN FUEGO!” to reflect the euphoric mood. He planned to return for GLOBEX trading that evening.

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🧠 Educational Takeaways:

• Cycle Day Awareness: Recognizing where you are in the 3-day cycle framework (CD1, CD2, CD3) can help frame trade expectations. CD2 often brings balance and consolidation before resolution.

• Watch Key Levels: PTGDavid emphasized the importance of levels like Open Range, VWAP, and P-VAL (Prior Value Area Low) to guide support/resistance zones and potential entries.

• Be Alert to News Catalysts: Unexpected news—like a Trump tariff headline—can inject extreme volatility. Always manage risk and avoid being caught off guard during major announcements.

• Market Psychology: Trapped shorts, euphoric buyers, and panic-driven candles all contribute to rapid directional shifts. Understanding sentiment helps navigate chaos.

• Stay Flexible: The day transitioned from textbook balance to historic rally. A rigid bias would have been punished. Traders must stay open to new information.

• Use Humor to Stay Grounded: In high-volatility environments, a little humor (as seen with PTGDavid’s posts) helps traders remain emotionally balanced.