Weekly Plan 7/4
Happy 4th Everyone
Hello traders,
Wishing all the Americans a very happy 4th of July.
We will start with a recap of the previous week, where we were able to get the weekly bottom of NQ on Monday with a 6 tick MAE and as of now we are almost 500 points above.
Other than that we were also able to capture most of the intraday moves on ES.
As you can see I got stopped on my GC short as well, but the key for me is to keep losses as low as possible and trade only to my levels(unless there is an extentuating circumstance signalling otherwise).
This week we have a short week due to 4th of July holiday.
As we navigate the waters of the second half of the current year, there are observations to be made, trends to be acknowledged, and predictions to be formulated. A noticeable and irrefutable fact that garners our attention is the heightened level of discontent among the pessimistic voices in the financial ecosystem. Key figures, such as Mike Wilson of Morgan Stanley, represent this sentiment, having largely failed to recognize and capitalize on the prodigious rally and instead being short the whole time.
In the ever-fluctuating landscape of short term trading, we have managed to chart a course marked by prudence and prescience. Since February, our strategic alignment has favored technology stocks over traditional value offerings, reflecting our understanding of the evolving dynamic of market forces and the burgeoning impact of technological innovation (you can read more below).
Being wrong on a trade is part of this game but staying adamant and persistent on your wrong position is just obstinance.
Directing our gaze towards Nasdaq, it is hard to overlook the fierce rally that technology stocks have staged. Fueled significantly by advancements and potential applications in Artificial Intelligence (AI), this upward trajectory is not anticipated to lose steam, at least not for the next couple of years. It may appear eerily reminiscent of the hype cycles that have previously enveloped electric vehicles (EVs), Special Purpose Acquisition Companies (SPACs), and genomic startups.
However, to juxtapose AI with the aforementioned trends may be a gross oversimplification. The potential for AI to revolutionize every facet of human existence is a proposition that should not be summarily dismissed or taken lightly. Its profound implications are such that funds, regretful of having missed out on the early stages of this bullish phase, are likely to contribute towards keeping tech stocks in a favorable position.
While it is reasonable to expect a potential market pullback, ranging from the middle of the current quarter leading into the termination of September, it is crucial to not lose sight of the larger canvas. An overarching bullish sentiment prevails over AI, Genomics, and Nuclear energy companies, signaling promising prospects over the medium to long-term horizon. Hence, the path forward is replete with opportunities that could potentially usher in substantial value creation.
Damn, that sounded so fucking smart!
But seriously, don’t ever read large passages with higher level vocabulary and think that the person writing it is better than you or has a higher degree of command over the markets. Markets are unpredictable, we just play probabilities and let the law of large numbers take it from there. But for the Law of Large Numbers to work you need to have appropriate risk allocation otherwise you might blow up before your thesis is played out.
Weekly Levels: