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Good morning, everybody. Today is Thursday, October 8th. Yesterday’s trade plan was extremely solid. We called for a chance to buy the market, as we were looking for longs only. Price came down and hovered into our 7822.50 Daily spot, simmered there for a few hours, and eventually the Bulls picked up the pace and launched price up well over 30 points to end the session only very slightly down on the day. Congratulations to everyone who had the patience to stick it out. It was a difficult day, but the plan proved true once again — especially with VIX making a massive downside move, which gave us the confidence to lean into this long.
In the overnight session, price drifted down from yesterday’s high and made a new low, coming down exactly into our 7803 Daily — one of the areas we were watching to get long yesterday. That area played very nicely, popping us from 7803 all the way back into the 7822.50 Daily, another significant level we’ve been watching. That’s a beautiful trade for well over 20 points, Daily to Daily, as the trade plan shows its teeth once again.
A Note on Today’s Market:
News: No Red Tag news to speak of. We do have Unemployment Claims at 8:30 a.m. It is not a Red Tag event, but we should certainly be aware of it.
Volume: Relative Volume is positive 8.2%. Adding that into our expected range, we could get a little over 20 points of movement above or below the overnight highs or lows.
Range: Expected range of 73.75 points. We have currently moved a total of 55.5 points, leaving approximately 18.25 points in the tank above or below the overnight highs or lows.
Gamma: We are back in Negative Gamma, as price has pushed below the gamma flip level, which has shifted slightly to 7835. This has been our breakout above/below spot for a few days now, and the dealers have positioned themselves directly at the important pivot we will watch as price approaches.
Trend: We are still up on the Daily and 4-Hour time frames. I can make a case for the 1-Hour being lost, but we have not truly lost our leg to the high, so I will default to the higher time frames to keep us pointed in the right direction. We are still pointed up and looking for longs.
🧠 Current Market Context
A Pullback After All-Time Highs Is a Chance to Reload
We are down 33 points at the time of this writing, but this is not a bad thing for us. We have been looking for a pullback from all-time highs so we can continue to play our longs, and in my opinion this could be a fantastic opportunity to reload. This is normal profit taking, as we have seen many times before: we squeeze higher, make an all-time high, and then drift down over the next few days into our major support, looking for the next group of buyers to jump in. That is what I believe we are doing now, as we continue to play our Dailies in progression all the way down.
Our job now is to find the spot that will actually give us some follow-through — or to maintain discipline, take profits on the moves the market gives us, and go from there.
We have limited, but quality, support below us. We will be monitoring two important spots to look for a long: the 7800–7793 sweep zone and the 7770.75 4-Hour leg to the all-time high. We also have one failsafe that absolutely has to hold at the 7734.25 Daily.
