Trade Strategy 3.27.23

Markets (Top Stories)

Economic Calendar

10:30 Dallas Fed Manufacturing Survey
1:00 PM Results of $42B, 2-Year Note Auction

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

S&P 500

Prior Session was Cycle Day 3 (CD3): Consolidation during the morning session lead to afternoon rally closing near highs of the day and capping a wild trading week with a Positive 3 Day Cycle. Prior range was 73 handles on 1.870M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 3946.95. Overnight trade activity has price bid above PH (4010.75). Bulls will need to sustain bid above this level for expansion of the rally. Reversion back below squelch’s that scenario. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4010, initially targets 4025 – 4035 zone. 

Bear Scenario: Price sustains an offer below 4010, initially targets 3990 – 3980 zone.

PVA High Edge = 3982       PVA Low Edge = 3944         Prior POC 3957

Range Projections and Key Levels (ES) June 2023 (M) Contract

HOD  ATR Range Projection: 4090; LOD ATR Range Projection: 3941; 3 Day Central Pivot: 3994; 3 Day Cycle Target: 4083; 10 Day Average True Range  92; VIX: 21

Nasdaq 100 (NQ)

Prior Session was Cycle Day 3 (CD3): Consolidation during the morning session lead to afternoon rally closing near highs of the day and capping a wild trading week with a Positive 3 Day Cycle. Prior range was 196 handles on 672k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 12688. Overnight trade activity has price bid above PH (12925). Bulls will need to sustain bid above this level for expansion of the rally. Reversion back below squelch’s that scenario. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 12925, THEN initial upside estimate targets 12985– 12995 zone.

Bear Scenario: IF Bears sustains offer below 12925, THEN initial downside estimate targets 12860 – 12850 zone.

PVA High Edge = 12855       PVA Low Edge = 12773    Prior POC = 12803

Range Projections and Key Levels (NQ) June 2022 (M) Contract

HOD  ATR Range Projection: 13158; LOD ATR Range Projection: 12675; 3 Day Central Pivot: 12848; 3 Day Cycle Target: 13242; 10 Day Average True Range: 310; VIX: 21

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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