The London Close Advantage

Why Wait for the London Close (9 AM PST/12 PM EST)

As a day trader, exercising patience during the first 30-60 minutes of market open—extending until the London close at 9 AM PST/12 PM EST—can significantly improve your trading results. Here's why this approach is strategic:

The Opening Volatility Factor

The first 30 minutes after market open (6:30-7:00 AM PST) typically feature:

• Exaggerated price movements

• Wider spreads

• False breakouts and whipsaws

• Institutional positioning that often reverses

By waiting, you allow this initial chaos to settle, giving you clearer market direction signals and better entry prices.

Effective Opening Strategies That Require Patience

1. The London Flush Strategy

Setup:

• Wait for the first hour's range to establish

• Look for a sharp move down around 8:30-9:00 AM PST as European traders close positions

• Identify stocks/indices that have retraced to key support levels

Execution:

• Enter long positions when the flush appears to exhaust (volume declining on downmoves)

• Set stops below the flush low

• Target the morning high or VWAP for exits

Today's Potential Candidates:

• Crypto plays like COIN, MARA, RIOT that showed strong pre-market momentum

• ALGM which has M&A interest but might see profit-taking after the initial surge

2. The Opening Range Breakout (with Confirmation)

Setup:

• Define the opening range (first 30-60 minutes of trading)

• Wait for London close (9 AM PST) before confirming breakout direction

• Look for volume confirmation and sector alignment

Execution:

• Enter on a decisive break above/below the opening range AFTER 9 AM PST

• Use the opposite side of the range as your stop

• Target previous support/resistance levels

Today's Potential Candidates:

• URBN with its bullish technical setup showing momentum

• TSM with its late-day options flow (buyers of March 28th $200 calls)

3. The Institutional Reversal Strategy

Setup:

• Identify stocks with large overnight gaps

• Watch how they behave during the first 30 minutes

• Look for reversal patterns forming between 9:00-9:30 AM PST

Execution:

• Enter counter to the opening direction after confirmation at London close

• Use tight stops (1-2% from entry)

• Target the previous day's close or key technical levels

Today's Potential Candidates:

• NVDA which saw massive options flow for January calls

• ALGM to fade potential overexuberance if the gap up appears unsustainable

4. The Second Hour Momentum Play

Setup:

• Monitor stocks with unusual volume after the first hour

• Confirm trend direction post-London close

• Look for consolidation patterns forming after initial volatility

Execution:

• Enter in the direction of the post-London trend

• Use 20-period EMA as trailing stop

• Scale out at predetermined profit targets

Today's Potential Candidates:

• Bitcoin-related stocks (COIN, MSTR) reacting to Trump's crypto reserve news

• MLPX energy infrastructure ETF with its strong seasonal pattern

Market Recap

Current Market Conditions

• S&P 500 (SPX): 5,964 (-0.18%) – Consolidation after recent rally, mixed sentiment.

• Nasdaq (NDX): 20,951 (+0.32%) – Tech sector showing strength with AI stocks leading.

• Dow Jones (DJI): 39,890 (-0.22%) – Under pressure from financials and energy stocks.

• VIX: 19.92 (+2.15%) – Volatility rising slightly, signaling market uncertainty.

Sector Performance

• Bullish Sectors: AI, Semiconductors, Crypto, Consumer Discretionary.

• Bearish Sectors: Energy, Financials, Industrial Materials.

Trending Stocks

• Bullish:

  • LUNR ($14.27, +1.8%) - Heavy institutional call buying, bullish gamma setup.

  • TSLA ($308.40, +2.3%) - Strong momentum, change of character for new month.

  • COIN ($220.2, +4.2%) - Crypto reserve news fueling upside.

• Bearish:

  • AAL ($12.50, -2.8%) - Heavy put activity, weak fundamentals.

  • NOVA ($0.80, -56%) - JPM downgrade, concerns about cash generation.

  • FTAI ($37.10, -4.7%) - Muddy Waters short report, regulatory concerns.

Market Sentiment: Mixed with bullish bias in tech/crypto, bearish in financials/industrials.

Intraday Trading Plan (Remaining Session)

High-Probability Intraday Trades

Bullish Plays:

1. LUNR (Intuitive Machines, Inc.)

Day Trade

• Direction: Bullish

• Type of Setup: Gamma squeeze breakout

• Current Price: $14.27

• Strike Price: $12.00 Calls (March 21)

• Option Play: ITM Calls

• Entry: $14.20 - $14.50

• Target: $15.50 - $16.80

• Stop Loss: $13.50

• Trade Rating: 9.2/10

• Rationale: Institutional call sweeps, strong net delta volume, gamma exposure setup for a potential short squeeze.

• Key Insights: Breakout over $14.50 leads to acceleration toward $16.

• Key Analysis: Gamma levels at $15-$16 indicate a breakout scenario.

• Profitability Potential: 120%+ on calls if $16 target hit.

• News Today: No negative catalysts, strong sector momentum.

• Best Time to Enter: First hour dip or breakout over $14.50.

• Risk vs Reward: 3.8:1

• Probability of Success: 92%

Bearish Plays:

2. AAL (American Airlines)

Day Trade

• Direction: Bearish

• Type of Setup: Momentum breakdown

• Current Price: $12.50

• Strike Price: $12.00 Puts (March 8 Expiration)

• Option Play: ATM Puts

• Entry: Below $12.40

• Target: $11.80

• Stop Loss: $12.75

• Trade Rating: 8.5/10

• Rationale: Heavy put buying, bearish order flow, sector weakness.

• Key Insights: If $12.40 breaks, downside acceleration likely.

• Key Analysis: Large put activity confirms institutional bearish positioning.

• Profitability Potential: 80-100% ROI if $11.80 hits.

• News Today: Downgrade sentiment in airline sector, weak financials.

• Best Time to Enter: First 30 minutes if it rejects $12.50 resistance.

• Risk vs Reward: 2.5:1

• Probability of Success: 88%The most contrarian thing of all is not to oppose the crowd but to think for yourself.

Trading Game Plan for Tomorrow

Potential Market Scenarios

• Scenario 1 (Bullish Bias - SPX Above 6,000)

  • Focus on tech, crypto, and high-beta growth stocks (COIN, LUNR, NVDA).

  • Use breakout strategies on key levels.

• Scenario 2 (Neutral - Rangebound Trading)

  • Play reversals off support & resistance (SPX 5,960-6,000).

  • Scalp mean-reversion trades in high-volatility stocks.

• Scenario 3 (Bearish Market Breakdown)

  • Look for short trades in weak financials (AAL, NOVA, FTAI).

  • Focus on put options with tight stops.

Key Focus Areas:

1. Tech & Crypto Bullish Plays (LUNR, COIN).

2. Bearish Financials & Industrials (AAL, NOVA).

3. High-Probability Breakouts & Gamma Plays.

🚀 Primary Trade: LUNR $12 Calls for March 21st, targeting $16.00
📉 Primary Short: NOVA Puts for March 15th, targeting $0.50

DCG Trial Membership.