Daily Log - August 5, 2025

I started about an hour after the market opened today, since I’m now back at my day job. The market had been trending down strongly in the morning with very few pullbacks to the EMA or trendline. The trend looked solid, so when we finally got a clean second entry short (2ES) right at the EMA, I took the trade. There had been a few touches on the trend channel line already, and there was a chance we had an overshoot — but I couldn’t pass up the setup. It didn’t work out and ended up being a loser, but I’m okay with the trade. It followed the rules and looked good.

After the strong downtrend broke, I was expecting prices to make a new low — but the bears never managed to get it, even after multiple corrections and attempts. The market eventually reversed without making that new low and started grinding higher inside a very broad and weak uptrend channel.

Later in the session, the market formed two big legs up, then made another attempt to reach the new low of the previous downtrend. Overall, the context toward the end of the session became pretty confusing. I’m ending the day in the red — but that’s okay. The trade wasn’t the worst spot to take a shot at, and I stayed disciplined.