Nasdaq Futures Trade Review & Commentary - July 22, 2026 transcript

Hello folks, how are you? Hope you're doing well. All right, so we're looking at the NASDAQ again. Keeping things simple. Not a long list of markets to look at. Everything I'm teaching here is applicable to everything else. Okay, so just be mindful of that. >> [snorts] >> And we're looking at through regular trading hours. So overnight last night, we had a lot of price action just hanging above that 1-hour Wednesday of last week noon time Eastern time. 1-hour buy side imbalance sell side inefficiency.

If you've watched the last few lectures and commentary, you know what that buy side imbalance sell side buy side imbalance sell side inefficiency is. So, we moved back into Monday's regular trading hours opening range gap as I see we would likely do overnight going into this morning's session. And we opened down here on regular trading hours for Wednesday at 9:30 Eastern time. So we had a discount gap. So we worked our way back up higher up into I'm actually going to highlight the price action around the settlement price on regular trading hours from yesterday.

So we'll anchor to that close. We'll draw down into the open right here on that. Okay? So there's consequent encroachment of today's discount regular trading hours opening range gap. So where we stopped trading yesterday at 4:14 p.m. Eastern time and then we resumed regular trading hours at 9:30 this morning. Why is that not there? It's There we go. Now it's correct. So we traded up into that gap or consequent encroachment.

Uh it does so before 10:00, so there's our 70% likelihood of happening. So not bad of a run there to there. So 100 handles or more from open to there. And we work into yesterday's first presented fair value gap. So that's what this level is. And we'll look at that from the perspective of electronic trading hours in a moment. Uh but we move higher and go all the way up into Let me add the highest octant. Look right in this area here.

Ready watch. See that line? Watch what's happening. See that? Now, that's where the body stopped on the rally up. That's interesting. It's probably random. We come back down, consequent encroachment of the regular trading hours opening range gap for today. Bang around a little bit. We break lower right back into Wouldn't you know it? Tuesday's first presented fair value gap. Okay? Um I used this to go short. Okay? So we're going to look at that now.

Um just so you guys know I'll be have a little bit of unfinished business up here for today's regular trading hours opening range gap. We have relatively equal highs up here. There's buy side up here. I think they're going to want to take it up there. Um if it doesn't happen today, we'll be looking for that going into you tonight you know, going into the rest of the week. Um electronic trading hours, let's go into that. >> [snorts] >> All right, so over here we have price trading down.

I gave you this gap last night in the commentary. So, we tried one more time getting above it. And buy side imbalance sell side efficiency right here. Wednesday's noon Eastern time, 1 hour buy side imbalance. We break lower, come back up into the gap I showed you last night. Beautiful delivery. Look at the bodies being left right here. Wicks up. I know it's a little hard to see, but you have your own charts to look at.

Right here. And then we break lower. Fair value gap right in here right before we took out that high. That's going to act as an inversion fair value gap. And rolls over. We trade into first presented fair value gap from Tuesday. That's what this is here. We sell off. This is all overnight. And then right in here we hit we hammer relative equal high. It slams into that. And I tweeted and just one more testimony to how I honestly believe, okay, and I know that people don't like me.

They like to take They like to take shots at me, but they don't have anything to say about the analysis and the trade executions. They They just simply go around that. But they'll say um this guy's got a lot of conspiracy theories. But now when I'm tweeting or posting on X and it has something to do with the market I'm trying to call your attention to it before it happens. Uh there's a strong long delay. And then it just pops up.

And it's just there's nothing I can do about that. And I've asked in the past if other people have seen that happen in their own posts and they have. They've they've confirmed it happens to them too, but I'm just noticing there's a whole lot of disconvenient inconveniences when it comes to me trying to to hang out with the algo and talk about the future before it happens in the charts. So, just something I'm observing.

You know, I'm not trying to make too much to do of it, but you know, just something interesting. Uh same bit of business here. We have a high right before the high is taken out. You can see this little here. Volume imbalance at the low to that. So, right in here where it's pink this is based on its first utilization. Both of these gaps I'm posting with the characteristic of how it would be viewed from its first utilization.

That's not first presentation. First presentation is in reference to time. When it formed. How it forms is the first utilization. By that I mean this candlestick opened with a small little volume imbalance between these candles here. And we rallied up and we have a small little volume imbalance here. So, this is a buy side imbalance sell side inefficiency. If the market was bullish I told you last night we're going lower.

Then this should have supported price go higher, but if it fails it'll act as an inversion fair value gap. First utilization here okay, would look like this as well. Bullish expectation if the market was bullish. I told you last night, it's bearish. We hit Tuesday's first relative everybody got. Hits it beautifully, nice sharp sell off. Okay? So, in this little area here, that's my first opportunity to see this change from its first utilization of a bullish PD array, if market was bullish.

But, my view is the market's bearish. So, I'm going to use this bullish PD array and apply the inversion aspect. So, now I'm going to look at it like that. Okay? And I'm going to look for this to fill, too, but I'm going to keep that huge just like that to show you where the entry was. So, I go into watch right here. See it? Right there. Now, that fills right there inside that inversion fair value gap in the volume of balance.

See it? Right there. Boom. Little bit of heat right there, not much. Momentary, little stinger. That wick right there, as long as there's no body above the midpoint of that, it doesn't even touch the midpoint, it's okay. Breaks lower. Now, this, because we traded outside of it with that close there, this should act as an inversion fair value gap. This is why you didn't see two rectangles here, cuz it would have been too much.

It would have been very confusing watching the trade execution. So, you saw it just with this. Okay? And then this is a breaker. So, we have high, low, higher high. Down close candle with the lowest close, that's this one right here. That's why I annotated. If you would have used these two consecutive candles here and used the low of that, there's not nothing really, you know, inherently wrong about that. You would you would feel much more victorious in regards to where it tries to say it hits that there, but done as I teach, that's how it really is.

So, my interpretation my interpretation, rather, is this is the real breaker. And we failed to touch it. So, if my PD array that should perform as a premium array can't even be traded to, what does that indicate? By my definition as Michael Huddleston, the author of all these concepts, our money concepts, order flow is if a premium PD array cannot be traded to or its consequent encroachment level can't be traded to or it can't leave a body in its respective upper half, that is bearishness.

If it can't even touch it like it does here, that's extremely bearish. Very, very interesting, isn't it? Look how fast this choppy falls. It's wonderful. So, from this entry up here, riding all the way down to the level I told you we would reach for overnight and the last 2 days, which is Monday's regular trading hours opening range gap consequent encroachment midpoint level. And I used this low and then I split that old consequent encroachment level at 28,998.25.

That's this red line here. And this old area here, I I split that in half. I did event horizon, so I took a partial of the three contracts I was short. I took one right there, one halfway between this low and Monday's consequent encroachment, and then I took it right at a move just below regular trading hours opening range gap consequent encroachment from Monday's trading. So, those fills are here and there. And then we had this nice little retracement in here right on time.

And I'll get back to that entry in a moment. And it drops aggressively here, washes out anyone that may have went long on consequent encouragement. Completely decimated anyone, which was diabolical there. And rallies up. And bullish order flow, every fair value gap and down close candle starts supporting price. And it's in a hurry. What's it going to do? It's going to go right back up into that 60-minute buy side imbalance sell side inefficiency.

And trades right to the highest octant before we get to the close of the relative trading hours opening range gap for today. Okay, so this is where we're at now. Okay, and those relative equal highs right over here, that's the next bit of business. So, we'll And I take that. It may get there before you get to see the video, but it's okay. I promise you it's okay. You'll be You'll be fine. This stuff keeps repeating. You don't need to see me doing it live so you can copycat me.

I don't I don't want that. I don't want that for my students. And I'm certainly not going to speed feed the frauds that pretend they know this stuff already or they learned it from some other school of thought and it's been rebranded. Uh the bounty is still out there, by the way, $5 million if you can find out where this information comes from if it ain't from mine. Hm. It's funny how you can't do that. Y'all going to work still, but you could say, "I ain't going to work.

I'm taking the old man up on it. I know where it came from." Cuz you don't You don't know where it came from. >> [sighs] >> But it's coming from the the horse's mouth right here, folks. So, again, uh I I think >> [snorts] >> I think the last month and a half has been a pretty good testimony to um how these things work, how consistent they are. Um yesterday, forced into a high resistance liquidity run condition, you can see, even in my own hands, it's it's going to be very hard.

But, when the market's giving everything like it's supposed to be, I gave you the last night that we were going to go lower. We're going to trade into Monday's opening range gap. And we're always aiming for consequent encroachment. It doesn't have to be the same day. We were aiming for it yesterday, for Tuesday, for Monday's opening range gap. Overnight, I told you we're probably going to go lower and go into that gap again.

We did. And first presented fair value gap from Tuesday. Lower. And some of you actually took this trade. And I'm very proud of that. I'm I'm very happy to see you guys doing that stuff. Uh cuz you didn't know I was doing that. I just presented this to extend it over into today's trading. And we get it as the short here. I was hanging out with Caleb. So, I wasn't able to do anything to get this. Otherwise, I would have went long there.

And took partials right at consequent encroachment of the Wednesday 60-minute or 1-hour by side imbalance sell side inefficiency as it's indicated here. And then, as we're getting closer up here, if you split this into the octants and the upper quadrant, that right there would have been a partial, too. And then I would have like one or two contracts. I think I earned the right to be able to talk like this, by the way.

You know, it it it can I feel uncomfortable doing it sometimes because some of the people in the community are just really really selective. And they they they don't they don't want to recognize the fact that I'm telling you these things before they happen. And what they focus on, the direction where it's likely to go, and then market goes there. And then I'm showing executions around that same premise. They don't have anything to say about that.

But, if I say something like, if I would have been in this trade, this is how I would have managed it. Because I don't have an execution on that, they'll they'll spin that into some kind of an argument. So, it's kind of like it sounds like liberalism to me. But, that's the next draw there. Okay, so if I had two contracts on, I would take one off right as we get to the the high that gray shaded area. Not at the high, but just below it, maybe two ticks and a half.

And I would like to see if I can reach above the 29,352 level, and then I would be content with that for today. So, that's a little bit of a review this morning. Hopefully, you guys got something out of the last couple lectures this week. Um I don't know if I'll be able to do anything the rest of the evening. Um my wife and I have plans. And we'll you know, we'll see what's up. Um if I can squeeze something in short right after the the 4:00 p.m. close, I'll try.

I can't make any promises. But, unless that's not likely to happen or doesn't happen, Lord willing, I'll try to touch base with base with you tomorrow morning uh before the 9:30 opening bell, and uh we'll go at it again. Until then, I wish you good luck, good trading, and be safe.