S&P 500
Prior Session was Cycle Day 1: Cycle Day 1 (CD1), long liquidation down trend pushed price lower and established a new cycle low at 5412. Reclaim of prior low (5450) sparked a strong short squeeze that propelled price upwards to fulfill our upper target zone as outline in prior DTS Briefing 9.11.24 closing near highs of the day. Range expanded to twice the average 155 handles on 2.147M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Markets continue to rally off the recent Time & Price Low on 9/6/24. Bulls clearly have momentum ball-control so it is theirs to lose, should they fumble. Pullbacks remain buyable as this will be our core alignment theme for today’s session. Typically trend days are followed by MATD rhythms for Cycle Day 2, so we’ll be monitoring price action for this potential scenario. but remaining flexible to Mr. Market’s wishes.
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 5545, initially targets 5565 – 5575 zone.
Bear Scenario: Price sustains an offer below 5545, initially targets 5525 – 5515 zone.
PVA High Edge = 5542 PVA Low Edge = 5444 Prior POC = 5582
ES Chart (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Cycle Day 1 (CD1), long liquidation down trend pushed price lower and established a new cycle low at 18547. Reclaim of 18600 sparked a strong short squeeze that propelled price upwards engulfing the previous five-sessions and closing near highs of the day. Range expanded to twice the average 746 handles on 710k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Markets continue to rally off the recent Time & Price Low on 9/6/24. Bulls clearly have momentum ball-control so it is theirs to lose, should they fumble. Pullbacks remain buyable as this will be our core alignment theme for today’s session. Typically trend days are followed by MATD rhythms for Cycle Day 2, so we’ll be monitoring price action for this potential scenario. but remaining flexible to Mr. Market’s wishes.
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 19130, initially targets 19290 – 19345 zone.
Bear Scenario: Price sustains an offer below 19130, initially targets 19040 – 18953 zone.
PVA High Edge = 18953 PVA Low Edge = 18550 Prior POC = 187998
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.
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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