Hi Folks!
On the surface, the hot inflation report slammed stocks lowered and it looks to be a tough day for equities. This report pretty much lowers the odds of a full 3 rate hikes that the market looked for.
This is why the Russell 2000 is the relative weak link, falling more than -2%.
But is it broadly bearish? Tech Stocks are already up significantly from pre-market lows, offering Scalpers an opportunity to profit from that bounce.
While I continue to use macro to guide my long-term decisions, my intraday views are inspired by my studying of price action and Orderflow.
Friends inside my Community who understand my intraday work now understand why timeframe diversification can be so helpful.
In our pre-market today, I attempted to share my view of how things would play out.
Bull case to test that pesky NQ 18560 level again. Bear case of NQ revisiting 18100-18200
After Bear case played out, If NQ could hold the line at 18050-18060, I viewed there to be a short window of opportunity for Bullish scalps.
Exhibit 1: Pre-CPI thinking
Exhibit 2: Post-CPI thinking
Exhibit 3: Bullish Scalps pays out.
Exhibit 4: Taking a piece of the intraday action from my plan and then enjoying rest of my day. Planning for tomorrow, doing DCF models, and other research initiatives.
I’m interested in helping folks cut through all the noise, find the key levels where I believe a reaction may be favorable, and help the friends make a few dollars through my research efforts.
For today, let’s thank 18050-18060 NQ.
There is long-term/intermediate-term investing and then there is intraday activity.
I want to help you do BOTH.
Here’s the capital allocation model:
Intraday Profits = Active Cash Flow
Long-Term Investing Positions = Compounds Passively in the Background
Any Intraday Profits —> Long-Term Investing Positions
or
Any Intraday Profits —> Pay for Lifestyle, or anything you want to get
When in Drawdown from Intraday Trading —> Go into Conservative Mode until drawdown is recovered.
I think a lot of people fear selloffs. Don’t.
The harder the market sells, the easier it will be for me to share powerful ideas like ones shared today.
Embrace selloffs - There is no opportunity if markets are pinned at the highs!
Upon further selloffs, I will have more long-term ideas to share.
Share my work. Support my research efforts so that I can do more for more people!
-Larry