5/9 Daily Plan: Another 100 Point Bounce in Nasdaq-100 from Jobless Claims Figures

Are we about to make a massive breakout?

Hey Everyone-

I’m on a lot of finance newsletters’ email lists and the general theme that I see analysts write about is that the market hasn’t been moving over the past couple days.

Patience…

I personally think a 1%+ week on S&P 500 is already quite good, and it’s not even Friday. Yes, there has been less action compared to late April/first week of May. But we have to remember that the market is in a holding period until Inflation CPI next week.

This type of market structure is healthy. We should not and can not expect the market to advance without pauses in between.

There will periods of time when investment accounts are range bound, but the environment actually is quite favorable for scalpers.

And sometimes, vice-versa. Scalpers are sidelined when we gap up & go while investors benefit.

See below what I mean. Yesterday, our plan heading into today 5/9 was the following for NQ (Nasdaq-100) in case the range-bound activity continued:

• That any gravitation towards 18050-18080 may be a bounce region. We essentially retested 18100 again today on NQ, for a 100+ pt bounce back to 18200

• That any direct advance continuation - for today - may be limited to 18200-18230. What is high of day for NQ? As of this post, around 18230. See the chart below.

Excerpt from 5/8 Plan

My analysis tends to be most relevant for the Morning Session. A different type of Institutional Cohort plays the afternoon session. I participate in the morning session based on my pre-market plan, and would prefer to be done by 11am eastern standard time.

To me, today (nor yesterday) isn’t a day of inactivity and our Daily Plans add significant value for those who understand how to navigate an intraday landscape.

The Nasdaq-100 made a 100+ bounce again from today’s lows.

Folks, That is the opportunity during “boring markets” such as this.

We do not need the Nasdaq-100 or the S&P 500 to close significantly green. If they do, awesome, then our investment accounts simultaneously benefit.

In the eyes of an Investor, the NQ’s (or QQQ equivalent) daily return today is .2%. In the eyes of a scalper, there was a 100+ point to capture a piece of the range from the morning lows.

If you do both, then you won in BOTH account types.

When you add up points gained from scalping consistently, it is an incredible supplement to a long term 401K investing portfolio strategy. Scalping is no substitute for investing. But used together, they are a powerful combination. I do not believe that any one strategy is superior. I simply believe that it is better to have more skills.

My next project is to do more analysis on the Dow Jones. Many of the names in the Dow I am familiar with. In the coming months, I will also share key levels on the Dow Jones (ticker YM) in addition to NQ (Nasdaq-100) and ES (S&P 500) to take advantage of sector rotation opportunities when they come.

I am actively participating in the Dow to get a feel of its trading rhythm and will share thoughts with members once my journal of statistics has more data.

For now, my specialty is NQ because I have done the DCF work for the Mag 7 and the biggest Semiconductor companies that drive this index. Knowing the fundamental ranges for Mag 7 and Semi companies gives me an alternative way to view support and resistance on NQ.

Below, I share forward looking conclusions.