2022 Ends With A Bang, Can Bulls Continue Into Early January? Jan 3rd Plan
While the final session of 2022 ended in the same range we have been chopping in for 10 days, it certainly ended with a bang squeezing 50 points in the final hour. The reason why is clear; I have spent the last week laser focused on one single price pattern which has controlled all my trading: A picture perfect triangle shown in white below. I wrote yesterday: “We are still stuck in the triangle as of writing, which means that the entire [3875 to 3815-20] area remains trappy, poor follow through noise, and I will be trading light and picking my spots carefully”
On Thursday, we rallied from ~3820 triangle support to 3875 triangle resistance. On Friday, we sold from 3875 triangle resistance to 3820 triangle support, then bounced hard at 3820 late day Friday. This shows the power of simple lines and chart patterns, and its all one needs to trade.
This leaves ES is a very interesting spot to start 2023. All patterns end with an explosive move, and considering this has not broken out, it means 2023 starts with a bang. In today’s newsletter, I’ll be talking how I traded todays swings via my system (the good, the bad, and the ugly), some big picture thoughts, and the actionable plan for Tuesday.