5/8 Daily Plan: Opportunity at the Open
+130Pt Bounce on NQ (Low to High) from our Pre-Market Plan
Hey Guys -
On the surface, today is another boring flattish day. However, if we inspect the pre-market session up until initial balance (1030am EST), there was a rather lucrative opportunity in that 90 minute window from 9am to 1030am.
The market -particularly technology- was weak ahead of the open, but there were a few clues to me that suggested that this dip at the lows may again be bought for today (even though softish conditions may remain).
My opinion was shared ahead of time in our Pre-Market Plan for members that I believed such a bounce may come in the 18050 NQ area.
Low of day was made at 18070.
Exhibit 1: Pre-Market Plan (shared before the opening bell)
Exhibit 2: NQ Nasdaq-100 (5-Min Chart)
That 90-minute trading window was a very lucrative trading opportunity for those who participate in intraday timeframes.
These are the best types of moves (though rarer) for intraday scalpers because the advance at the open had virtually no pullback and advanced 130+ Points in a 90 minute window. Due to the size of the advance, scalpers were literally finished with trading and very profitable for the day by 11am.
Is every day this easy? Of course not!
Over time, folks will notice that some days are particularly good conditions for scalpers (2-way trade) while others are great conditions for long term accounts (Gap Up + Continuation).
The market is designed to rotate between types of market structures to benefit different account types on different days. This is the benefit of Timeframe Diversification.
Now, let’s say one doesn’t trade NQ or MNQ (Micro NQ) directly, how can they use my pre-market opinion?
Because NQ is at the index level and its components (FAAMG/Semis/Internet) are very correlated with it, knowing where NQ may bounce is indirectly an area where hot stocks such as NVDA/AMD/MSFT/AAPL/META/GOOG/etc…may bounce as well.
Where the index goes, so do its stocks.
Let’s talk about forward looking conclusions below.
On Monday, I gave Broadcom as an opportunity in my WhatsApp Pre-Market Note to members. By Wednesday (today), it’s up about 3-4%. Nice!
Do I have more ideas? Yes I do. Discussed below.