Morning Notes – 8/4/2022

Good Morning:

• I don’t have many complaints these days as the market generally is marching forward per the daily and weekly forecasts.
• Our swing traders took another long position in September’s Monthly ATM SPY calls yesterday when the futures hit 4111.75.
• We sold half the position to finance our break-even stop and the other half at the close when the futures reached 4161, just short of our 4162 resistance/target from yesterday morning.
• We are in the Trading Room today for the first few hours. I would like to get positioned to ride the market into the stops above the swing highs from June, which should start just above 4189.
• It all depends on how much fuel is left in the tank. The market has been melting up in a short/Gamma squeeze, and the angle is not sustainable for much longer.
• Overnight traders pushed above yesterday’s high but could not keep the price there. So we are opening in the upper third of yesterday’s range.
• The DEM range today is 4120 to 4190, and the top of the WEM range is 4215.
• We will encounter resistance at 4175 and 4200, with support at 4135 and 4120.
• Global events remain a wildcard. Use stops.

Consider joining us in the Trading Room today.

A.F. Thornton lately