New Record High

Outlook 01/23: U.S. stocks markets again rose to new records yesterday, helped by the Senate vote to reopen the government and provide funding through Feb. 8. The next catalyst for equities could come from the slew of big earnings set to be unveiled this week. Of the 55 companies in the SP500 that have reported earnings through Monday morning, 80% have topped expectations.

/ES Value: YVAH 2835 YPOC 2826.50 YVAL 2816

/ES Plan: Yesterday market left a bullish profile (PBT 2850). Overnight inventory is bimodal (LIS 2835) moving below yesterday's value and printing a new record high that should be visited on the regular session, so as usual, we've these options:

A) If market remains below LIS 2835 with bearish internals, try to be a seller leaning on 2835 towards ONL 2828.75 and LVNs 2822-2816. Failure to breakdown ONL 2828.75 early (1st 30m) is a signal of a strength.

B) If market starts to move above LIS 2835 with bullish internals, try to be a buyer leaning on 2835-2838 towards ONH 2842 PBT 2850. Failure to take out LIS 2835 early (1st 30m) is a signal of weakness.

Tips: Remember, stick to a trading plan and a systematic process, don't try to seek perfection. Use buy/sell range zones, not absolute levels. Manage trades according to your size, scaling out exits, moving stops to breakeven. Manage your risk, your goal is to come back next day.

Today's Economic Calendar

10:00 Richmond Fed Mfg.
11:30 2-Year Auction

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.

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