The day began with PTGDavid setting a clear tone: Markets had dipped overnight into the 5525–5515 target zone, as anticipated in the Daily Trade Strategy. With the transition from Cycle Day 1 to Cycle Day 2, the focus shifted to expecting trading range rhythms — with a bullish lean — as traders aimed to balance the recent decline.
Key Early Insights:
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Line in the Sand (LIS): 5550 was critical. Stay bullish above it; cautious below.
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Primary Directive: Always stay in alignment with the dominant force — a reminder that trading isn’t about ego, it’s about following the flow.
The morning delivered as promised:
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Price held above VWAP, giving early long opportunities.
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The first target at 5575 was fulfilled right on schedule.
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But the market, always testing discipline, broke the LIS mid-morning, forcing a reassessment and shifting expectations back to two-way traffic — classic Cycle Day 2 behavior.
Midday: After some consolidation and a brief stop-hunt flush, bulls reclaimed 5515 — a critical pivot — demonstrating resilience and setting the stage for the afternoon session.
Afternoon Magic: In true Cycle Day 2 style, a grind-up rally unfolded:
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Price re-crossed and held the 5550 LIS.
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PTGDavid repeatedly emphasized staying aligned — a golden rule for navigating the rally.
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While many latecomers chased the move, David cautioned: “The best shrimp have already been eaten.”
A colorful way to teach patience and timing.
At the close, a $3.5 Billion MOC Buy Imbalance confirmed what the price action had already whispered all afternoon:
The Big Boys KNEW.
If you stayed aligned, you profited alongside them.
🎯 Educational Recap: Lessons from Today
1. Know the Cycle Day Type:
Cycle Day 2 often delivers range trading with a slight bullish bias after a Cycle Day 1 trend move. Expect back-and-fill action — don’t force trends.
2. Respect Your Line in the Sand:
LIS (like today’s 5550) is your anchor.
Above it = favor longs.
Below it = reassess.
3. Stay in Alignment:
Your job isn’t to predict — it’s to recognize the dominant force and align with it.
Alignment beats ego, always.
4. Trust the Process (AAA Framework):
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Alignment: Recognize dominant market conditions.
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Assignment: Define your setup and plan.
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Attack: Execute decisively without hesitation.
5. Don’t Chase Late Moves:
Late in strong rallies, the easy money is made. Be cautious chasing the scraps — there’s always a fresh party tomorrow.
📜 Final Thought:
“Those who align with price action walk alongside the Big Boys. Those who guess… get left behind.”