S&P 500
Prior Session was Cycle Day 3: JPOW’s speech at JHOLE delivered the expected “snappy/trappy” volatility we referenced in prior DTS Briefing 8.23.24. Positive 3 Day Cycle as price traded above CD1 Low (5613.50) during RTH. *****The 3 Day Cycle has a 90.91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history. Range was 64 handles on 1.343M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: This session begins a new cycle with the primary objective to find a secure low from which to stage the next rally. Bulls have uncompromised ball-control as the market enters the final week of summer trading. This week is historically a heavy vacation period for traders/money-managers. So this week may have “thin-to-win” trading rhythms on lower volumes.
Markets are in a “balancing-phase” following the past two-weeks V-Pattern volatility. Price has also traversed multiple levels both on the way down and back up, so we will defer to Mr. Market to guide us on which levels will be of key interest this week. Our daily plan remains unaltered. Select Triple A+++ trade setups with proper risk management.
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5650, initially targets 5670 – 5675 zone.
Bear Scenario: Price sustains an offer below 5650, initially targets 5632 – 5625 zone.
PVA High Edge = 5658 PVA Low Edge = 5626 Prior POC = 5650
ES Chart
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: JPOW’s speech at JHOLE delivered the expected “snappy/trappy” volatility we referenced in prior DTS Briefing 8.23.24. Positive 3 Day Cycle as price traded above CD1 Low (19771.50) during RTH. Range was 312 handles on 574k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: This session begins a new cycle with the primary objective to find a secure low from which to stage the next rally. Bulls have uncompromised ball-control as the market enters the final week of summer trading. This week is historically a heavy vacation period for traders/money-managers. So this week may have “thin-to-win” trading rhythms on lower volumes.
Markets are in a “balancing-phase” following the past two-weeks V-Pattern volatility. Price has also traversed multiple levels both on the way down and back up, so we will defer to Mr. Market to guide us on which levels will be of key interest this week. Our daily plan remains unaltered. Select Triple A+++ trade setups with proper risk management.
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 19785, initially targets 19880 – 19905 zone.
Bear Scenario: Price sustains an offer below 19785, initially targets 19705 – 19680 zone.
PVA High Edge = 19833 PVA Low Edge = 19688 Prior POC = 19730
NQ Chart
Economic Calendar
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.” –BR
*****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.
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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