Introduction
Today’s market was quite choppy, making it a challenge to navigate. However, despite the market’s volatility, we managed to make successful trades.
The Influence of the CPIs
The S&P jumped from 4135 to 41.75 an hour before the cash market opened due to the release of the CPIs month-over-month year-over-year numbers. The CPIs are a great indicator of inflation, which is currently on everyone’s minds. Although the big move in the market after the CPI release was not due to a bullish number, we believe that an algo fired and caused the jump, but did not have a strong weight on the bullish versus bearish side of the market.
Identifying Trading Opportunities
Later in the day, the market made a couple of jolts to the upside, but we did not catch anything. However, we identified a move to sell the NQ end of the day. We sold the NQ starting at 13,045 and got the group in at 13,20. We identified the previous low of the day, which was at about 12,980, and were confident that the NQ could achieve the distance between the time of execution and the close.
The Short at the End of the Day
The short at the end of the day was a breakout front run trade. We got in prior to the breakout and looked at all three markets related to market price versus their market lows. We felt that the distance between the market price and the low was something that could be achieved. We then analyzed the other factors and variables that go into our decision-making.
Our Successful Trading Streak
In conclusion, we started with an internal balance of $10K and are averaging about $800 a day for 51 days in a row. Despite the market’s volatility, we managed to make successful trades by identifying trading opportunities and analyzing other factors and variables.
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