Markets (Top Stories)
For December, the ISM manufacturing index is expected to rise to 47.1 from 46.7, while the service index falls to 52.5 from 52.7. ADP is expected to show 113,000 new jobs were created in December versus 103,000 in November.
Source: Investing.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal Cycle Day 1 unfolded for the first trading session of 2024 by establishing new cycle low at 4765.50. Market On Close Buy Imbalance of $7.4 Billion rebounded price during the closing rotation, creating a Neutral Balanced Day. Prior range was 62 handles on 1.549M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is for two-way traffic to absorb recent wide range action. With prior session’s activity, we now have a new “sandbox” (range) from which to focus…4765 – 4795. Bulls will need to reclaim above the upper edge (4795) and the Bears need to force a liquidation break below lower edge (4765). As always, stay flexible and in-alignment with the primary intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4795, initially targets 4805 – 4810 zone.
Bear Scenario: Price sustains an offer below 4795, initially targets 4770 – 4765 zone.
PVA High Edge = 4790 PVA Low Edge = 4775 Prior POC = 4785
Range Projections and Key Levels (ES) March 2024 (H) Contract
HOD ATR Range Projection: 4828; LOD ATR Range Projection: 4749; 3 Day Central Pivot: 4826; 3 Day Cycle Target: 4843; 10 Day Average True Range 41; VIX: 13
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal Cycle Day 1 unfolded for the first trading session of 2024 by establishing new cycle low at 16622.50. Market On Close Buy Imbalance of $7.4 Billion rebounded price during the closing rotation, creating a Neutral Balanced Day. Prior range was 416 handles on 634k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is for two-way traffic to absorb recent wide range action. With prior session’s activity, we now have a new “sandbox” (range) from which to focus…16635 – 16785. Bulls will need to reclaim above the upper edge (16785) and the Bears need to force a liquidation break below lower edge (16635). As always, stay flexible and in-alignment with the primary intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 16735, initially targets 16785 – 16800 zone.
Bear Scenario: Price sustains an offer below 16735, initially targets 16655 – 16635 zone.
PVA High Edge = 16786 PVA Low Edge = 16648 Prior POC = 16728
Range Projections and Key Levels (NQ) March 2024 (H) Contract
HOD ATR Range Projection: 16905; LOD ATR Range Projection: 16549; 3 Day Central Pivot: 17080; 3 Day Cycle Target: 16938; 10 Day Average True Range: 188; VIX: 13
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.
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