Are you losing money because of this simple mistake that kills trading profits?

Summary

In his weekly market analysis, trader David Floyd examines the S&P 500, 10-year Treasury notes, the Euro, and the Dollar-Yen. With the S&P at all-time highs, Floyd cautions against overextending long positions, instead favoring intraday pullback buys. 10-year notes and the Euro are rangebound, while the Dollar-Yen uptrend may continue but requires tight risk management. Overall Floyd conveys the need for patience and disciplined trade location as markets hover near critical technical levels.

Takeaways

• 😀 The overall market trend remains strongly upward, though with limited support/resistance levels currently
• 📈 S&P is extended from averages, requiring cautious/selective intraday longs rather than swings
• 🚫 Not looking to short the S&P unless below 5040 support
• ➡️ S&P has potential head & shoulders forming, break below 5092 is bearish
• ⏱ 10-year yields rangebound between 1092-1101 currently, awaiting a breakout
• ↔ No edge trading euro currently as it's stuck in a range
• 📉 Dollar-yen in short-term uptrend but extended from key longer-term levels
• 😕 Markets are at an inflection point awaiting new trends to emerge
• 🤔 New trades require faith rather than solid risk-rewards with markets extended
• 💡 Using standard deviation bands helps quantify overextended levels and risks

Q & A

What index is David analyzing in the beginning of the video?

David is analyzing the S&P 500 index on an hourly chart in the beginning of the video.

What does David say is important when the market is at all-time highs?

David says it is important to create a story about where your risk and reward is when the market is at all-time high levels without many support/resistance levels to lean on.

What pattern does David identify that could be forming on the S&P 500?

David identifies a potential head and shoulders pattern forming on the hourly chart of the S&P 500.

What is the range David identifies on the 10-year Treasury note futures?

David identifies a range between 109.24-109.92 and 1101 on the 10-year note futures.

What does David recommend for trading the 10-year note with the current rangebound activity?

David recommends patiently waiting on the sidelines for the 10-year note futures to break out of the range before taking a directional trade.

What timeframe is David basing his analysis on?

David is basing his analysis primarily on hourly and daily charts to identify near-term technical patterns and support/resistance.

What does David say you should do if you are looking to go long USDJPY?

David says if looking to go long USDJPY, you should approach it on a short-term basis and keep a tight leash on it rather than a 2-3 week long-term trade.

What point does David say the markets are at overall?

David says the markets overall seem to be at an inflection point, waiting for key levels to break which will reveal new trading scenarios.

Why does David say he is not interested in trading EURUSD currently?

David says there is no edge in EURUSD right now as it is range-bound between support and resistance levels.

What timeframe does David focus his analysis and trading on primarily?

David focuses primarily on hourly and daily charts for near-term technical patterns to base his short-term swing trading analysis and decisions.