Netflix Drops A Stink Bomb

After the bell today, Netflix released their earnings and it was just a bit outside of expectations. As I look back at the price action, it seems like the market had a serious idea of what was coming. After making what would be the RTH HOD in A period, it was a slow grind down for the NASDAQ futures index into the release and then a free fall.

07.16.2018-23.35.46

If you look at the levels I posted yesterday for the NASDAQ futures, today’s value area is overlapping to lower compared to Friday’s. Overall, the day had a decent range of almost 86 points with 55 points of the range occurring in the last 15 minutes of the futures RTH session. You just have to love earnings releases.

Tuesday’s Trade Plan

I’m going to keep this blog post short, since I’m exhausted and really need to get some rest.

As I write this, price on NQ futures is trading right around settlement (11:50 PM ET). Frankly, it’s been hugging that level most of the evening. The image below shows the immediate levels I will be watching heading into tomorrow.

07.16.2018-23.53.07

I’m not going to pretend and try to predict where price might end up when the session opens up in the morning. This chart clearly shows I have levels both above and below. If we open below today’s range, my immediate bias will be bearish and I will be looking to target Friday’s low 7288.25 and possibly the demand zone near 7282.00. If price opens above today’s range, I need to be really cautious and aware of where in the range I am before I start looking for longs. I most definitely want to see price making higher highs and higher lows above settlement if I’m going to maintain a bullish bias. My initial upside target are the TPO VAL at 7360.75 and the supply zone low at 7372.75 created after the Netflix earning release.

For Economic News Releases, Fed Chairman Jerome Powell testifies before the Joint Economic Committee at 10:00 AM ET which could trigger some additional market volatility. No other noteworthy event pops up on my radar. I will also keep a very close eye on tweets from our commander-in-chief since they definitely have the ability to move the market. Keep an eye out on earnings releases, there are around 29 reports scheduled for tomorrow ( https://stocktwits.com/discover/earnings-calendar ).

That will do it for me, good night and good trading.

 

 

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