Power of the Dollar

Market Rundown

September 11, 2024

❝

"Big news drives big moves, but patience and discipline drive success."

Hello, my friends!

Today was a remarkable day of volatility – truly a day trader's dream!

The key, of course, is being positioned on the right side of the trend when the moment strikes.

With major news events setting the stage pre-market, the anticipation was high.

BUT before forming any bias, I always ask myself one crucial question: “Am I staying neutral until price reaches my levels?”

This mindset keeps me grounded, waiting patiently for the perfect entry, and staying sharp in fast-moving markets.

Pre-Market 🌅

8:00-9:30 est

  • Price settled right in the middle of the range before the CPI print – no surprises there!

  • Largest 0DTE level sitting above at NQ 18,900

  • Timing is everything, and today was no exception…

CPI Data⚡

CPI

Aug 2024

July 2024

Headline y/y

2.5%

2.9%

Headline m/m

0.2%

0.2%

Core y/y

3.5%

3.2%

Core m/m

0.3%

0.2%

  • The CPI volatility event triggered a sharp selloff, followed by a swift rebound, bringing prices back to the highs just ahead of the NY open.

    • The latest inflation data reveals a significant milestone: the lowest level since February 2021.

    • While this is a promising indicator of economic cooling, one segment remains persistently high—housing costs.

    • As inflation continues to ease, the stubbornness of this sector could still pose challenges, especially for consumers.

NY Open (2.01%) Impulse🏦

9:30-11:00 est

  • Right off the open, rejection came swiftly and decisively, NQ 18,900 level (largest 0DTE), I highlighted earlier – no shock there!

  • As the session unfolded, the trend was unmistakable. Nasdaq showed relentless momentum, failing to break new highs across short, medium, and long intraday timeframes.

  • The setup was simple and easy - increase short bias below 18,900 and hands off the longs

  • I’ve said it time and again in our community: the trend is your friend.

    • And today, it took us straight down to both demand zones at 18,680 (trigger) and 18,580.

  • NQ 18,580 (0DTE Demand)

  • NQ 18,900 (0DTE Supply)

  • NQ 18,680 (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.

Power of the Dollar (DXY) 💵

The DXY’s inverse correlation is one of my favorite tools during major economic events – and today, it didn’t disappoint!

We saw a strong impulse pushing the DXY up towards the 101.8 level - and the story ended there as it wouldn’t fall back down to the CPI lows.

So, what was I watching?

  • The DXY’s movement in relation to the Nasdaq. As the Nasdaq broke to new highs leading into the NY open, the DXY remained strong, consistently making higher lows.

  • This inverse correlation was the key insight of the day, offering a powerful signal for sharp intra-day traders.

“Soft Landing” Headlines 📰

  • Major indexes fluctuated but finished on a positive note, with the Nasdaq surging over 2%. Tech stocks led the S&P 500's sector gains

  • Energy lagged behind as the weakest performer.

  • The dollar saw a slight uptick and held formation

  • Bitcoin remained flat

  • Gold in the slight red

  • U.S. 10-year Treasury yield edged up to approximately 3.65%.

Closing Note 🧠

In my closing thought, I always remind myself to only focus on one impulse after the NY open.

Why?

Because we can never predict if there will be more impulses of the same magnitude, or even greater.

While today delivered a major reversal, our priority remains on managing the most consistent and reliable move.

It's about staying focused, not chasing every fluctuation.

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.