2025 Storytellers Series - NQ Futures June 05, 2025
Storyteller Series: NASDAQ Futures Contract Analysis
Overview of the June 2025 NASDAQ Futures Contract
- The discussion focuses on the storyteller series for the NASDAQ futures contract set for June delivery, specifically June 5th, 2025.
- Reference is made to a previous video discussing levels and inefficiencies that will be revisited in this analysis.
Understanding Daily Inefficiencies
- The speaker highlights an old inefficiency or daily "cibby" (a term likely referring to a specific market structure), emphasizing its importance in trading decisions.
- Non-farm payroll week presents challenges; traders are advised to avoid trading after Wednesday's London session until Friday's employment data release at 8:30 AM Eastern Time.
Trading Strategies During Non-Farm Payroll Week
- The speaker stresses the significance of understanding higher time frame inefficiencies as real support and resistance levels rather than arbitrary highs and lows.
- A focus on using one-minute charts is emphasized, with no new opening gap utilization or first presented fair value gaps being applied today.
Practical Trading Insights from Recent Sessions
- The speaker shares personal trading experiences during the London session, noting a short position taken near session highs based on liquidity draws.
- Discussion includes how employment data impacts market behavior, particularly referencing price action around daily cibby levels.
Market Behavior and Strategy Adjustments
- Observations are made about market reactions post-employment data release, including potential bullish trends despite initial sell-offs.
- The concept of bearish order blocks is introduced; traders are encouraged to identify these for potential short positions targeting liquidity below recent lows.
Challenges in Trading During High Volatility Periods
- Wednesdays and Thursdays during non-farm payroll week can lead to frustrating trading conditions due to erratic price movements.
Market Analysis and Trading Strategies
Understanding Market Movements
- The market experiences a downward movement, breaking below relative equal lows and reaching the daily CIBBY low. A subsequent rally occurs back to half of the daily CIBBY.
- Observations are made regarding sell-side liquidity pools, particularly referencing Wednesday's trading patterns that indicate clear opportunities for short selling.
- The analysis highlights the importance of recognizing inefficiencies in market movements, with further breakdown into lower quadrants providing additional shorting opportunities.
Trading Opportunities and Market Structure
- As the market closes, it opens significantly lower but rallies back up to levels of inefficiency. This behavior indicates potential trading strategies based on observed patterns.
- Emphasis is placed on studying price swings annotated in shared charts, focusing on how buying and selling can be effectively utilized without needing every analytical tool available.
Key Concepts for Traders
- The discussion encourages traders to consider market conditions—whether they are consolidating or trending—as foundational elements for developing trade setups.