Trade Strategy 5.22.23

Markets

S&P 500 futures are down another 0.5% ahead of Memorial Day weekend with the latest tensions between the U.S. and China on display.

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar 

8:30 Housing Starts
8:55 Redbook Chain Store Sales
10:00 E-Commerce Retail Sales
10:00 Jerome Powell: “The Quarterly CARES Act Report to Congress”
2:00 Fed’s Rosengren Speech

https://www.investing.com/economic-calendar/

S&P 500

Prior Session was Cycle Day 3 (CD3): We stated in prior DTS Briefing 05.21.20: ” Having fulfilled cycle objectives, bullish bias remains intact as additional back and fill may continue. We’ll mark today as a “wild-card” with wide range of price level potential.” Session unfolded pretty much on script as price consolidated, albeit with a slight downward skew.

Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Normal for CD1 decline is unfolding during GLOBEX Session as price has violated Prior Low (2933) fulfilling and extending beyond 2918 CD1 Violation Level.

Objective of Cycle Day 1 is to probe for a “secure low” from which to start the next cycle rally. Currently that low is 2903.75.

P-VA High = 2957       P-VA Low = 2942         P-POC = 2948

Bull Scenario: IF Bulls hold bid above 2925, THEN initial upside estimate targets 2930 – 2940 zone

Bear Scenario: IF Bears hold offer below 2925, THEN initial downside estimate targets 2915 – 2910 zone.

Range Projections and Key Levels (ES) June 2020 (M) Contract

HOD  ATR Range Projection: 2956; LOD ATR Range Projection: 2900; 3 Day Central Pivot: 2845; 3 Day Cycle Target: 2935; 10 Day Average True Range 66.00; VIX: 30.00

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal CD1 Decline is unfolding as price violated CD3 Low (9352) during GLOBEX Session. CD1 Violation Level (9318) has been fulfilled with a low marked at 9140 as potential “secure-low”.

P-VA High = 9454           P-VA Low = 9386          P-POC = 9414

Bull Scenario: IF Bulls hold bid above 9298, THEN initial upside estimate targets 9323 – 9343 zone.

Bear Scenario: IF Bears hold offer below 9298, THEN initial downside estimate targets 9285 – 9275 zone.

Range Projections and Key Levels (NQ) June 2020 (M) Contract

HOD  ATR Range Projection: 9417; LOD ATR Range Projection: 9233; 3 Day Central Pivot: 9387; 3 Day Cycle Target: 9322; 10 Day Average True Range: 206; VIX: 30.00

Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined  ALWAYS USE STOPS!

Good Trading…David

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee

*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.

Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN


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