Trade Strategy 6.12.24

Posted on by June 12, 2024

Markets (Top Stories)

  • Wednesday features a one-two punch of news that starts in the morning with the pivotal consumer price index reading for May, and ends with the Fed’s policy meeting in the afternoon.

  • When it comes to interest rates, the Fed will do nothing. However, officials will offer a variety of economic forecasting updates that will include the central bank’s much-watched “dot plot” of interest rate expectations.

  • Economists expect CPI to show just a 0.1% increase from April, though that still would equate to an aggregate annual rise of 3.4%. Core PCI is projected to show a 0.3% monthly gain and a 3.5% annual rate.
Source: CNBC.com

Economic Calendar

 

Source: Investing.com

S&P 500 (ES)

Prior Session was Cycle Day 1: Normal CD1 as price declined to produce a new cycle low at 5334.50, which fulfilled the expected average decline as outlined in prior DTS Briefing 6.11.24. Once the new low was deemed “secure”, buyers regained control and by end of the day the upside target (5385) was fulfilled. Range was 51 handles on 1.318M contracts exchanged

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2: Potentially market-moving “dual” events are the CPI Report (8:30 am) with an expected 0.01% reading for May and the FOMC/Presser (2:00 – 2:30 pm). The “dot-plot” will be the main focus during the “bobble-head” Q&A. We will remain true to our discipline of aligning with the dominant forces of the day and seek out our A-Plus+ trade opportunities. 

As always, our tactical trade plan remains unchanged…Stay in alignment with dominant intra-day forces.

As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 5375, initially targets 5390 – 5410 zone. 

Bear Scenario: Price sustains an offer below 5375, initially targets 5355 – 5350 zone.

PVA High Edge = 5366       PVA Low Edge = 5334         Prior POC = 5355

***NOTE: IF you want to learn more about how the 3-day cycle levels are derived, THEN check out the FREE TRIAL offer below. Cycle Analysis is an integral part of the PTG Methodology.

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    Range Projections (ES) June 2024 (M)

Nasdaq 100 (NQ)

Prior Session was Cycle Day 1: Normal CD1 as price declined to produce a new cycle low at 18994.50, which fulfilled the expected average decline as outlined in prior DTS Briefing 6.11.24. Once the new low was deemed “secure”, buyers regained control and by end of the day closed near session high. Range was 263 handles on 554k contracts exchanged

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2: This cycle’s  target  of 19241.50 has been fulfilled during the CD1 rally. So with the potentially market-moving “dual” events on deck for today, we will remain true to our discipline of aligning with the dominant forces of the day and seek out our A-Plus+ trade opportunities. 

As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 19190, initially targets 19305 – 19335 zone. 

Bear Scenario: Price sustains an offer below 19190, initially targets 19140 – 19120 zone.

PVA High Edge = 19144       PVA Low Edge = 19030     Prior POC = 19057

Range Projections (NQ) June 2024 (M)

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.” 

*****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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