ES PRE MARKET THOUGHTSThis a sample of how I do my market preparation. The night before I form a hypothesis of how I will approach the day if the market gaps up or gaps down. Preparing the night before takes out all the emotion and once I see the morning gaps I then refer to my plan for the day.
White Lines show the Price Levels I will be paying attention to tomorrow along with the Highs and lows of the day and pivots:
Trend and Trades I May Consider
Trend: Staying Long unless there is a gap below the lows. NQ and ES in a channel. May look to fade false breakouts of the channel's until out. First of the month can be a bullish day.
Gap Fill or Gap and Go: Will look for Gap Fills on an up gap below the Yesterdays Highs/ R1 pivot or a down gap that is above yesterdays lows using support. If the index's gap solidly over the highs (which I would then consider support) I will consider running with the index long at the open. If the 3 index's have a bearish gap down, under yesterdays lows, will look for support long unless extremely bearish. I don't like gong short on the first day of the month.
Long: looking for false breakdowns off support levels.Will consider a BO with a modest down gap with the goal to retest the highs. Would need all three index's in agreement to attempt a BO over the highs of the channel and would lean towards the NQ.
Short: No short fades unless at the highs of the channel. I don't like going short on the first day of the month unless the open is extremely bearish.