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TG Daily Market Profile reading

Futures gain momentum in the ON session and runs into resistance in the trade setup range posted in the playbooks for subscribers between 4181.75~4172.25 with a stop at 4205.50. If you happen to be in this trade, you did good and more than likely we will see a move towards the gap from the settlement on Friday which was 4153.50, although futures saw some continuation lower beyond the settlement. For those who are in this active trade I mention off the playbook, note that a move above 4191.50 would be indicative of a squeeze higher into that 4205.50 stop to have better chances, so make that trade of shorter duration and take profits where possible. Gap rules apply since we have gapped up nicely from Friday’s settlement. If you take a closer look at the TPO chart below which has ON participation showing clearly, notice that right from around the Sunday futures open, buyers have outnumbered sellers in the push higher to the ON high we have clocked thus far [8:15 am] of 4177.50. This is a healthy sign and the USD index is also giving up some gains here early into the push above 92. Trading today is going to be a bit tricky and I would prefer trading into the short trend from the resistance points [stops] shown on the playbooks versus long trades.

Possible Scenarios and ideas for intraday participation

• Long focused traders who are convinced that this move lower has found support, should attempt longs only from the range shown in the counter-trend grid sent to subscribers and expect support in the 4145.75 to hold. Longs from that area have potential to tag 4189 if the ON trend is to continue and establish a stronger footing into the close today.
• I’ve already discussed short-focused trade thoughts earlier and will repeat them on here. The top level resistance is at 4205.50, above there should result in a massive short-squeeze higher. Take profits on short trades today in shorter time intervals as a shift in sentiment could otherwise stop you out.
• As a subscriber, if you take a look at the pivots, we are finding it difficult to keep above 4173.25 from the ON attempt to squeeze things above and beyond the settlement. Make note of this and the fact that initial support is at 4163.25 followed by secondary support at 4140.25 both of which are nicely above the post settlement low we made into the Friday close at 4126.75.
• Traders of $SPY ETF options, versus giving you a suggested trade, I am merely adding support and resistance information for today which should allow you to focus on trades with a better mindset. There is resistance at 418.05 and support at 414.06. In all likelihood, we will remain range bound in this area for Monday. If I was trading SPY options today I would keep my calls if price dropped between 413.75 and 415 even targeting a mid-week strike of 420.

Key Levels to factor for the intraday price movement.

TPO Chart

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