Morning Thoughts 10/3 ☕︎

Happy Friday! Grab your coffee and let's see what everything is looking like to close the week.

Gm ☕︎ finally Friday, and what a week it has been. Apologies as yesterday I wasn’t feeling well and a little under the weather today. Planning on doing a very in-depth look ahead on Sunday for next week with some good trade setups, overview of the indices and key levels for the week so look for that to drop Sunday night.

We’ll start off here with an update on our XLV position we initiated on 9/30:

Insane move, and I myself am regretting not taking options instead of shares! But nonetheless, this has been an awesome trade thus far and likely set for some consolidation here at our first take profit area of $145.

If I were in shorter dated options, I would take some trims here but given I’m looking for a multi-week, potentially multi-month move here, going to ride full position of shares and evaluate again if we get to our T2 target of $150.

Gold

GC has been awesome this week and I’ve focused a large part of the week on just trading it exclusively, the indicator has nailed each swing high and low, and I was able to take a bunch of points out of the market this week on it.

On the indices (NQ/ES):

I’m seeing some sellers stepping in yesterday and again today on the tape, which could point to some early weakness next week but we’ll do a large review of all of this on Sunday’s post.

We had a sell print yesterday at 25179 and can see rejected here again in globex last night, will be a new bias level for me on NQ moving forward, and to close the week out we see strong support levels at 25075-25055 zone and below that at our 25024 level.

More to come on Sunday, have a great weekend!

-gtd