Trading Plan for the days action 7/02/22

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US markets started off on the back foot for a good flush lower after the employment data came out stronger than expected. Key Indexes were lifted into the close as a few major tech stocks (AMZN and TSLA) lifted the Nasdaq and hence the SP500. USD rallied along with bond yields as bonds markets are showing some nervousness to inflation and rate rises.

The SPI200/ASX200 both reacted lower off resistance (ASX200 at 7108 and SPI200 at 7010) into the US close after pushing up off support earlier. Watching for either continuation higher off a higher low or lower highs from the open and a push into support. The DOW initially flushed lower to trap some sellers before rallying up off lows into 35330. Price did fail off this level into the US close so watching to see if a lower high will lead to new lows or whether we see a higher low build above 34810 for longs. The Hang Seng had a contained session as price was caught between 24405 and 24570. Watching for a flush into 24760 and then reaction lower or for a sell off the open and move lower through 24405. The Nikkei found some heavy selling off 27455 into the US close and ended above support at 27175. Watching to see if price tests into 27175 off the open and then holds for longs or whether price breaks through for a deeper move down. May see a squeeze higher on open to clear out some sellers.

Cryptos ramped higher at the start of the US session and managed to hold the gains into the close. Prices edged higher on both Bitcoin and Ethereum over the weekend so the open will be interesting. For any long into both, I will need to see a flush lower before holding a higher low. For any short, I want to see some failed rally and then a lower high hold.

Spot Gold again spiked down and recovered at the start of the US session as Algo traders mess with Gold bulls. Price ended around the 1807 area so if the previous session is anything to go by, I expect to see a grind higher and price to again be spiked lower at the US open.

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SPI200 Index

ASX200 Index

DOW Index

Hang Seng Index

Nikkei Index



Spot Gold

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