Morning Notes – 7/6/2022

Good Morning:

• I have to cut it short this morning – but everything is thoroughly covered in the live recording from this morning posted above.
• We had a good day in the trading room yesterday, picking up about 18 points on the S&P 500 Micro Futures and everyone had some good practice.
• We also brought the Swing Trader strategy up to 50% invested in August Monthly SPY calls near the morning lows. We moved our stop up to an hourly close below 3788. We averaged in at 3748.50.
• We have some economic reports out at the top of the hour so be careful. Fed Minutes also come out at 2:00 pm EST. I don’t expect any surprises.
• Balance Rules apply to the range roughly between 3840 and 3740. The last three daily bars may also be forming an expanding triangle, which is also a breakout pattern.
• I am still looking at the June 17th low as an intermediate, Nominal 20-week cycle low. While we are still in the throws of the bear, the cycle low should give an extra boost to this rally.
• Use the balance range to project your intitial targets.
• Always remember, we don’t know what comes next. Nobody does. This could very well be the bottom of a “cyclical” bear for all we know. I sitll believe that the bear has more to go – and this is a reprieve. But anything is possible.

A.F. Thornton