Market analysis for May 9th, 2024

Welcome back! We had a solid day yesterday. My net liq ended up $6,100 on the day. Most of our trades worked with very few of our open positions hurting us too much. An interesting development with our 0DTE's has started to take shape. Since the inception of the event contracts with NDX and Bitcoin we have found them to have better edge than the standard 0DTE setups. That's changed this week. I'm not sure why. I believe it's due to the consolidating markets in both the NDX and Bitcoin however, that last two days we have not been able to find great risk/reward setups using them. Our SPX 0DTE yesterday was a big hit with a 20% return and our NDX continues to carry most of the weight with a return over $3,400 on the day.  We also had a nice start to the day with another unique setup on the Theta Fairy. It's all about the setups! We have EIGHT earnings trades that we put on yesterday that should all be in the profit zone this morning. We'll look to add six new ones today.
We are back in the scalping room today. We've had a lot of success with scalping and are looking at ways we can expand it to five days a week.

Lets take a look at the markets:
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Markets are largely continuing to consolidate back around the previous consolidation areas. They are all still holding above their respective 50DMA but its looking more and more tenuous. Take a look at the VTI.

We are starting to get a divergence in the RSI. The Stoch is in overbought territory. MACD is flattening out and volume in dropping. PoC (Point of control) is quite a bit lower than our current level (purple line). It could act as a magnet to draw us down.

Our trade docket for today looks busy but its largely a lot of profit taking from yesterdays earnings setups and adding the new ones in for today.
/MCL, /ZN, ABNB, AFRM, AMC, ARM, BYND, CRM, DIA, GLD, HOOD, SPX/NDX/Event contract/Bitcoin 0DTE's, NVDA, RUN, XBI, GRPN, AKAM, BLNK, DBX, U, YELP.

My bias for today is largely unchanged from yesterday. I'm mostly neutral to start the day. Unitl this consolidation zone clears. Be prepared for a potential big move as the market continues to coil.

Looking at the heat map from yesterday you can see it was a largely mixed bag with not much directional bias.

Intra-day levels for me:
/ES; Tight ranges for today. 5209/5213/5223/5232 to the upside. 5200/5194/5182/5172 to the downside.

/NQ; 18189/18211/18242/18208 to the upside. 18132/18104/18025/18000 to the downside. 

Bitcoin; Weakness continues with 65931 as substantive resistance. 60677 support with 59321 as secondary support. 

Good luck today folks. We have had so much success with our earnings trades and I don't see why today would be any different. As far as 0DTE's go? We'll have to see. I'm not sure how great the setups will be today. We'll do our best with scalping to try to take up any slack. 
On a side note. I'm super grateful for those of you "good humans" who have expressed appreciation for my efforts and the content I put out. Let's all work together to be better traders and better humans. I appreciate you.