Morning Thoughts - 10/1

Grab your morning coffee!

Good morning! Looks like we had some very nice volatility in the globex session (I’m assuming related to the nothing ever happens govt shutdown), here’s a quick morning view of the charts and where we stand in the grand scheme of things. Let’s review versus our plan from yesterday:

On Gold, we had noted the large number of buy signals the script was firing, and that bulls needed to break thru 3853-3860, and hold the retest, to revisit ATHs and boy did they do that. Now if you’re looking for longs, make sure the 3900-3894 area holds on any tests or we open up a move back to 3853-3860

NQ:

I noted two major levels yesterday which price was contained between all day until the end of day quarter end squeeze above (24730.50 major support level and 24855 major resistance level), there were plenty of points to be had just trading those two levels.

During globex, we puked below 730.50 but look at the defense from bulls, reclaimed, backtested, and now pushing higher again. Strong response from bulls and have to lean bull here until bears can get a definitive close below 730.50. This is a great example of why we as traders need to be patient, wait for reclaims of key levels to buy, versus trying to knife catch.

ES:

Had noted yesterday that the major area on spooz was 6692-6690, naturally I missed my fill in RTH by a point (low of 6693) but bulls did well holding and we drifted toward 6730 in the afternoon session as expected.

Much like NQ, a large sweep below, and reclaim of the level was a great long opportunity if you caught it, and now we are back in the battleground zone 6690-6730 today.

Stay nimble today and happy trading.

Cheers!

-gtd