Market analysis for Jan. 31st, 2024

We had a really solid day yesterday with very few posiitons in the model portfolio needing attention. Our NDX 0DTE cash flowed over $1,000 profit, once again and my net liq. was up $4,500 for the day. Scalping was a huge success with over $1,300 profit and we now have automated timestamps! We look to close out a solid first month of they year today.

MSFT, GOOG and AMD earnings drug the futures down overnight. The hightened I.V. allowed up to get an amazing entry in the 1DTE /NQ overnight setup and ThetaFairy. Both look good going into the open this morning.

We've got BA, AAPL, META, AMZN reporting today and we look to play all of them.

The overnight drop in futures didn't do much damage to our technicals. Dropping us from a "strong buy" rating to "buy". 

Today is news catalyst heavy with earnings, ADP and Canadian GDP as well as oil inventory numbers which we always watch closely with our oil ladder strategy. 

Of course, the big catalyst today should be FOMC and Powells testimony:

Futures retace has placed us right back into our "chop zone" that we've been in for a little over a week. 

The Tech heavy /NQ is getting hit harder percentage wise. 

On FOMC days I don't give levels as frequently the price action won't adhere to them, depending on Powells testimony. Our approach on FOMC days is to double dip. We'll start with a very asymmetric, low prob/low risk, high return, high theta 0DTE right out out of the gate. The goal is to risk very little and get maximum theta errosion. Ideally we'd like to exit this within a 1-2 hour period and then we wait! FOMC minutes drop then 30 minutes later Powell starts his testimony. This, more times than not is what the algos queue off of and we'll start to get movement. More times than not the first move needs to be faded. With about 70-90 minutes left in the trading day we'll look to enter our second 0DTE.