Respect the Tape
by Tony Rago
Another large move played out overnight, which often leaves us with a choppy and unpredictable open as the market digests those overnight swings. The higher-time-frame trend remains firmly bearish, particularly on the NQ, and that’s the backdrop we have to respect. While I expect we’ll see plenty of rallies throughout the session, those bounces are likely to attract sellers until proven otherwise. At the same time, we’re still in an environment where headlines can quickly change the tone of the market, so don’t be surprised if news-driven spikes attempt to “save the tape” throughout the day. Volatility remains the name of the game.
These are some of the toughest conditions to trade because following price often means selling after a sharp decline, which can feel uncomfortable and carry additional risk. That’s why patience matters. My plan is to let the first 15 minutes play out, allow the opening range to establish itself, and then make decisions based on what the market is actually doing—not what I think it should do. Protect the gains you’ve built this week, stay disciplined with your risk, and remember that sometimes the best trade is waiting for the cleaner setup.
👉 Full breakdown is inside today’s Pre-Market Playbook.
Check it out here and trade it smart.
Until next time,
Tony
