Market Analysis for Feb 10th, 2022



2/10 Recap -  Results are for all to see, easy wins🏆

4520, 4585 key pre-determined levels + gameplan worked flawlessly today. Both sides banked 💵💰

RTH open bounced into 4585✅

Afternoon lower highs and lower lows✅

4535 broke ⚠️
4520 broke⚠️
4500 broke ⚠️ going into sour power hour🤢🤮

Next key level at 4485 reached by 4pm🎯

Problem is traders were either too biased, didn’t adapt in real-time. Or overtraded on suboptimal setups.

What did you do when 4520 finally lost? Review your mistakes tonight, learn and conquer tomorrow.

Brand new day💪

  • Primary expectation for today is range/balance day which could evolve into a full flown stampede into end of week. Focus on long biased trades only when above 4520. Absolutely, no shorting allowed when above 4520. This could extend
  • Current price = 4535, short-term target remains the same at 4585/4600, unchanged from yesterday. 
  • We got filled on swing exits overnight at the 4585 highs and on the CPI breakdown, decent train ride
  • Conversely, IF a decisive breakdown below ES 4520 occurs at any point, be careful of bull trap/bull breakout failure. Then, price is stuck back in the range of 4535-4440.
  • Our primary goal today is to extract as much alpha as possible given the trend has been crystal clear for this week
  • Focus and generate alpha during 9:30-11:30AM EST via higher lows higher highs setup, then enjoy the finer things in life. Making money is one thing, but enhancing your PnL/time executed is a key component of actually winning in the markets
Ricky Wen is an analyst at ElliottWaveTrader.net, where he writes a nightly market column and hosts the ES Trade Alerts premium subscription service.