Founder’s Afternoon Notes – 3/2/2022

Using the chart immediately above, here are the conquered levels today:

• 1. The 5-day line, also the Navigator Algo trigger,
  2. The overnight high and secondary downtrend line,
  3. The first resistance level from the morning outlook, also the monthly open that determines whether March will be a bull or bear bar,
  4. Today’s implied high,
  5. The second resistance level from the morning outlook, also the Volatility Trigger, and
  6. The previous week and yesterday’s high, also an important gamma level where the market stalled.
• Today saw a lot of short-covering, so we did not see the market stall too much until #6. That is where I had identified the rising wedge. But note the hesitation at each level.
• So that is how it works, point to point until it stalls or reverses. Clusters of key levels provide more support or resistance.
• Of course, a vital trading principle is that conquered resistance becomes support and vice versa.
• So our toe is back in the water on both the Leveraged and Non-Leveraged swing strategies. We have good positioning and set the stops. The stops are slightly below today’s halfback, but I might move them up if we get a look above and fail per Balance Rules.
• We will be applying Balance Rules in the morning – depending on the overnight action.
• I don’t like to repeat myself, so read all the notes today for strategy and buy/sell details.
• There is no material change from Sunday’s outlook. We have overtaken both the 5-day line and the Algo Trigger, net positives. The 2/24 low still looks secure. 
• But the reality is that we moved from the bottom to the top of the four-day range. My best judgment is that the range is a consolidation to go higher and challenge the primary downtrend line. 
• Still, the market is holding up impressively under a lot of bad news.

A.F. Thornton