Morning Notes – 8/2/2022

Good Morning:

• Time being in such short supply, I must rely on the live morning show and the recording to keep this public blog updated.
• I will be in the Trading Room today if you want to join us.
• Global events loom large. The Orwell Administration appears to be making the same mistake with China that they made with Russia. I do not believe China is bluffing on the Pelosi visit to Taiwan any more than I thought Russia was bluffing about Ukraine.
• Either President Orwell has not learned anything, or we are being dragged into World War III purposely because it serves the interests of the Global Elite.
• Nothing is scarier than having the Chinese, European, and U.S. economies on the brink, with our rulers needing a distraction (like war) to take our focus in another direction. History is replete with such precedents.
• And it is not advisable to assume that China’s reaction will be immediate.
• If it were not for global events, today’s strategy would be to get positioned around the 5-day line for a final rally leg up to 4200.
• The 5-EMA normally would be a short-term stop and buy point. The line sits at 4085 or so, just above the overnight low at 4083.50. Also, recall that the WEM low is 4098, so the entry point is in the Green-Green Zone.
• Options and Gamma levels frame the price action with the Call Wall at 4200 and Zero Gamma at 4100. So we are at a critical level based on how the market priced options this week. We should end the week on Friday’s close at or above this level.
• In short, this is a low risk to stop entry level. That is what we will be discussing in the room today.
• Let’s see how it goes. If you are serious about trading, I encourage you to sign up for the Trading Room. We will raise the price soon, and we will never raise it for you once you are signed up.

A.F. Thornton