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Capital Opportunity
Market Rundown
“Capital preservation isn’t about avoiding risk—it’s about protecting your foundation while positioning yourself to take advantage of strategic opportunities. In volatile markets, it’s not just about staying safe, it’s about staying sharp.”
Hello, my friends!
Happy Friday! Let’s dive in and redefine what Capital Preservation really means.
You often hear retail traders & investors talk about "capital preservation" days—but I only buy into that when there’s no volatility on the horizon.
Historically, we’ve had plenty of smooth opportunities on Fridays, and today was no different.
Remember, it's never about the day of the week; it’s all about timing and location in the markets.
And what did we see today? A smooth, level-to-level setup that erased any thoughts of playing it safe.
Opportunities were there. Let’s keep this momentum going!
NY Open (0.74%) Impulse🏦
9:30-10:00 Est
Right at open price started to settle in the predefined level - our largest 0DTE demand zone of the day - 19,420
You can’t make this up—it happens 9 out of 10 times right at the open, whether it’s a major demand or supply zone.
Right off the bell, price surged aggressively, shooting up to the next high-volume level at 19,515.
BUT here’s the kicker—knowing we had a key economic print incoming in just a few minutes (10 am Est), I played it safe and closed all positions.
This is the beaty of risk management,
knowing exactly when and where to close your positions so there’s no risk left on the table.
By doing so, you protect not just your capital, but also your emotional well-being.
This discipline allows you to maintain a clear mindset and the confidence to come back stronger the next trading day.
It’s not just about the trades you make today, but about preserving the mental and financial strength to stay in the game for the long run.
10:00-12:00 Est
10:00 AM hits (University Michigan Sentiment), and BOOM! What do we see?
An undecisive candle—what I like to call the “Darth Vader” candle—wiping out both levels, just as mapped out in pre-market.
This move, captured on the 5-minute chart, unfolded in mere seconds.
And this, my friends, is why I always say: stay away from major events like this. They can blow right past your stop or take profit in the blink of an eye!
As we enter NY lunchtime, volatility typically begins to taper off, a pattern we often see as the morning rush subsides.
It’s a natural point to step back and call it a day …
NQ 19,420 (0DTE Highest Level of Demand)
NQ 19,515 (0DTE Highest Level of Supply)
NQ 19,310 (0DTE Highest Level of Hedging)
0DTE Levels: Zones of significant volume in underlying assets, that can lead to an increase of volatility as the expiration approaches
These market levels are recalculated and updated daily, taking into account factors like gamma expiration, trading volume, and market volatility. For the most up-to-date levels and analysis, all information is available on MenthorQ.
Day-to-Day Statistics 📊
Interested in how I stay on top of my trading performance?
I use a detailed system to record my daily statistics on Tradersync
See my Profit Factor of 3.09 below that I use daily in order to keep my system in check on the online trading floor
This is key in order to treat trading like a business—consistently tracking leads to consistent improvement.
End of Week headlines 📰
Market Rally Driven by Rate Cut Speculation
Stocks surged today on growing speculation that the Federal Reserve may implement a 50-basis-point rate cut in the coming week.
The Nasdaq 100 experienced its largest weekly rally in almost a year, fueled by rising optimism that the Federal Reserve may implement a rate cut soon.
This surge in market confidence lifted major tech stocks, with top performers including giants like Apple, Microsoft, and Nvidia.
Investors are closely watching economic indicators, betting that lower interest rates could further boost growth in the tech sector and the broader market.
Name | Price Chg. % (5D) | Industry |
|---|---|---|
Arm Holdings pic ARM | 26.00% | Semiconductors and Semiconductor Equipment |
Broadcom Inc. AVGO | 22.53% | Semiconductors and Semiconductor Equipment |
Super Micro Computer, Inc. SMCI | 18.39% | Technology Hardware, Storage and Peripherals |
Warner Bros. Discovery, Inc. WBD | 17.24% | Entertainment |
NVIDIA Corporation NVDA | 15.81% | Semiconductors and Semiconductor Equipment |
Advanced Micro Devices, Inc. AMD | 13.60% | Semiconductors and Semiconductor Equipment |
Constellation Energy Corporation CEG | 13.24% | Electric Utilities |
Closing Thoughts 🧠
How to manage your Mental Risk on todays price action?
The best move was to zoom out and block out the noise.
Why exhaust your mind by focusing on every tick on the 1-minute chart?
Keeping perspective and staying patient always leads to better decision-making.
Let’s remember: preserving our mental energy is just as important as protecting our capital.
Stay sharp and don’t let the trigger points in your trading or personal life wear you down!
Until next time,
Steve Benyi
Founder, The Daily Impulse
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Important Disclaimer:
This newsletter is for educational purposes only and does not offer financial or investment advice. It should not be taken as a recommendation to trade assets or make any financial decisions. Please be cautious and ensure you conduct thorough research or consult with a financial professional before making any investment choices.