The Fed Intervenes

Market Rundown

September 10, 2024

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"Success is not final, failure is not fatal: It is the courage to continue that counts."

Winston Churchill

Hello, my friends!

It’s another quiet morning on the news front this Tuesday in markets, but never be fooled by the calm.

After yesterday’s strong close, we were seeing pre-market push to new Higher Highs, signaling a potential short-term reversal.

However, I always make it a point not to speculate too early or get ahead of myself. The real focus is on what truly matters—the first major Impulse, and where market makers are positioning themselves in order to balance out the market. That’s when the game truly unfolds, and we can seize the real opportunity.

Lets dive in!

NY Open 🔔

9:30-10:00

  • The market opened just below the critical 0DTE supply level at NQ 18,800—an area loaded with tension for short-term traders.

  • This zone, packed with high volume, proved to be a battleground of indecision. It was nerve-racking to say the least, but as we approached the 1-hour close, the price continued to reject this level, signaling a potential shift in momentum.

  • The longer it stayed beneath that key level, the pressure kept building, signaling an even stronger potential for further weakness

10:00-11:30

  • After an hour and a half of wild price swings and constant indecision, that major supply zone was rejected not once, not twice, but three times!

  • As if the market wasn’t already on edge, Fed Speakers started making headlines, adding even more fuel to the fire.

    • “The Fed unlikely to cut rates by 50 basis points at any of its three remaining meetings this year, say 54 of 71 economists.”

    • “The Federal Reserve easing cycle will be mild and slow by historical standards.”

11:30 - Confluence - VIX

  • Ah, the VIX—my reliable sidekick in navigating market turbulence. It’s not just a fear gauge; it offers crucial insights into what might be coming next and serves as that extra layer of confirmation we need.

  • Today, the VIX didn’t break the previous lows, holding firm at the critical level of 19. Higher highs began forming, signaling that momentum was shifting.

  • It looked like the VIX had its sights set on targeting the next 0DTE high of 20.

  • The VIX acts as a beacon, giving us the heads-up to be cautious but prepared for what’s coming next.

11:30-12:00 Lunch Closure - (1.23%) Impulse

  • After the third push higher failed, we finally got the impulse we were waiting for, driving the market right down into the 0DTE trigger level.

  • It was the final flush for the morning session, and with that move complete, it was the perfect time to close the book and call it a day.

  • My number one rule is simple: never overstay my time in the markets. 

  • The longer you linger, the more the balance between time and value erodes.

  • As we moved toward power hour, predicting market behavior becomes trickier. The levels we track throughout the day lose their conviction as new forces take over.

    • And trust me my friends, chasing trades in those final moments can lead to regret more often than reward…

  • NQ 18,500 (0DTE Demand)

  • NQ 18,800 (0DTE Supply)

  • NQ 18,635 (0DTE Trigger)

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.

AAPL Holds the Line (1.67%) Impulse 📈

Apple's stock price continued its bullish momentum, maintaining upward order flow even after the midday pullback.

The market’s resilience has kept the uptrend intact, signaling strength as we move into the afternoon session.

Check out the major headlines below:

  • Apple's recent "Glowtime" event left analysts divided.

  • While the iPhone 16 promises potential upgrades, many experts believe the real excitement will come next year.

  • The focus now is on the company's strategy to maintain momentum through 2024, with mixed reactions on whether this latest lineup will drive significant growth.

  • Analysts are cautiously optimistic, pointing to Apple's consistent innovation but noting that next year's releases could have a more substantial impact on driving customer upgrades.

  • AAPL 217.5 (0DTE Demand)

  • AAPL 222.5 (0DTE Supply)

  • AAPL 220 (0DTE Trigger)

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.

Closing Thoughts 🧠

The Time-Value Balance in Trading

In trading, time is just as valuable as capital.

The longer you linger in the markets without a clear plan or purpose, the more you risk diminishing the balance between time and value.

Overstaying your welcome often leads to forced decisions, emotional trades, and missed opportunities.

The key to success isn’t just knowing when to enter a position—it’s having the discipline to exit when the opportunity has run its course.

Protect your time, honor your strategy, and remember that patience is just as powerful as action.

Until next time,
Steve B.
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.