Overview of the Day
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| This FRYday session was a textbook example of strong directional movement driven by a key macroeconomic event—Fed Chair Powell’s speech at Jackson Hole. The PTG room capitalized early and decisively on the upside, with several traders locking in excellent trades before the market shifted into a grind phase. |
Pre-Market Setup
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- Overnight action: Market retested CD1 Low/D-Level and reversed, forming a Perfect PKB Long for overnight traders.
- Gamma levels were clearly defined:
- Upside: Resistance at 6,425–6,450 with potential extension to 6,500.
- Downside: Vulnerable if below 6,400, with 6,300 and 6,150 as key supports.
- Market was pricing Powell’s speech as a binary event, with backwardated vol structure highlighting risk.
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Key Trade Opportunities
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- Opening Range (OR) Breakout
- Big momentum early.
- Manny: Grabbed a quick +20 points and emphasized the value of a “one and done” Friday trade.
- Bruce F: Bagged 4 targets on a 50-point move, calling it a spectacular Friday.
- Powell Speech Reaction (10:00 AM)
- Powell’s dovish tilt (comments on downside employment risks) sparked a strong upside thrust, fulfilling Cycle STD Extreme High at 6464.
- This action led to condor sellers getting squeezed as the market surged past expected range.
- Room participants took advantage of volatility, with Manny catching a +40-point move before price extended even further.
- PTGDavid managed an A4 long and looked for re-entry around the 6455 handle.
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Lessons & Takeaways
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- Don’t anticipate — react: The market’s response to Powell was more important than the speech content itself. Room consensus was to let price action lead.
- Know your levels: The defined gamma zones and D levels gave clear reference points, which helped traders align with momentum.
- Volatility matters: Watching volatility (not volume) was critical today, particularly for interpreting whether post-speech price moves were sustainable.
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End of Day Notes
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- After the explosive move, the market slowed into a consolidation phase, leading David to mark it as entering “grind phase.”
- David’s advice: Stay flexible for a possible late-day buying opportunity if there was a decent pullback (though none materialized).
- MOC (Market on Close) data showed a $3 billion BUY imbalance, reinforcing the bullish close.
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Positive Energy to Close the Week
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- Multiple traders locked in solid profits early and exited with no regrets—especially important on a Friday.
- David reminded the room: FRYday = Capital Preservation Day.
- Room wrapped up with encouragement to refresh, recharge, and reset intentions for next week.
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Summary Verdict:
A high-quality trading day driven by macro catalysts, precision level reading, and disciplined execution. Traders who followed PTG setups and stayed nimble around Powell’s speech were well rewarded. |
