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Morning everyone. Today is Wednesday, October 21st, and we come off an incredible day in the trade plan yesterday. We used the 7729.75 Daily to start the day off right with a huge short, only to have price catapult higher in an immense squeeze after the Trump Iran news — a squeeze that took us all the way up to our highest untested Daily at 7791.00. We were able to play it for a precision smack, bringing us all the way back down to our significant Daily at 7753.50 and the major 4-Hour support at 7745.00. This was an incredible day for Trade Plan subscribers and Inner Circle members as we continue to set records day after day. Congratulations to all those who took advantage of yesterday’s trade plan amazingness.
As we come into the morning, we find ourselves in an interesting situation. There is no Red Tag news to speak of, but we are riding high on geopolitical news from Trump. Price is balancing in a very tight range, bumping its head on the massive 7791.00 Daily pivot while remaining steadfast above the significant 7753.50 Daily.
A Note on Today’s Market:
News: No Red Tag economic news, but we are riding high on geopolitical news from Trump — and these are market-changing events. We also have a massive earnings day today with a lot of the Mag Seven and the banks reporting, so it is sure to be a volatile day, especially after the close, with serious earnings after hours. I am sure there will be some dealer positioning happening today.
Volume: Relative Volume is at -4% — essentially on par with average participation.
Range: Expected range of 82.5 points. We have only moved 36 points this morning, leaving approximately 46.5 points left in the tank above or below the overnight highs or lows.
Gamma: We are still in Negative Gamma territory. The gamma flip has moved all the way up to 7875.00, telling us that dealers are still hedging to the downside, which can give us increased ranges and volatility.
Trend: Down on the Weekly, Daily, 4-Hour, and 1-Hour timeframes. Yesterday’s massive squeeze was a surprise, but it ultimately accomplished nothing whatsoever in terms of our process. Our process is pointing us down, but we could continue to get rotations in both directions. After yesterday’s squeeze, we need to stay cautious in case of more geopolitical headwinds.
🧠 Current Market Context
The Trump Squeeze Rescue & The Six-Day Balance
Yesterday we were dangerously close to losing the massive support at 7729.75, the big daily leg to the all-time high. If price had moved below that, we would have continued our move down for at least another 100 points. Trump’s news saved it and sent us up, and now we are balancing in a very tight range this morning, bumping our head on the massive 7791.00 Daily pivot but remaining steadfast above the significant 7753.50 Daily. That 7753.50 level is keeping everything together this morning. However, VIX is suppressed — so with our process pointed down on all timeframes while our tiebreaker, VIX, is telling us we have some serious suppression, it will be interesting to see what happens today.
