S&P 500
Prior Session was Cycle Day 1: Average Decline 5733 which was established on the prior CD3 sell down was successfully retest as price established a new cycle low at 5724. We will use this as our new benchmark for cycle performance.
This session was essentially a balancing day as the value zone nested inside the prior day’s value zone closing near the 5760 Line in the Sand (LIS) as outlined in prior DTS Briefing 10.2.24. Range was 49 handles on 1.190M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.2.24
…Transition from Cycle Day 1 to Cycle Day 2
The transition to Cycle Day 2 Current range boundaries are marked between 5730 – 5780 with 5760 providing the key fulcrum pivot. We’ll continue to use this level as today’s Line in the Sand (LIS) as bulls and bears battle for directional control.
Initial 3-Day Cycle Target (5767) was fulfilled in prior session, so bulls objective now is to clear and convert 5780 – 5785 zone cleanly for a “relief-rally” to gain traction recovering the 5800 handle. Bears on the other hand will be looking to force a break below 5740 – 5735 zone for a deeper move down to the 5700 handle.
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 5760, initially targets 5780 – 5785 zone.
Bear Scenario: Price sustains an offer below 5760, initially targets 5740 – 5735 zone.
PVA High Edge = 5766 PVA Low Edge = 5747 Prior POC = 5763
ES Chart (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: New cycle low was established at 19833.50 and this level will be used as our new benchmark for cycle performance.
This session was essentially a balancing day as the value zone overlapped the prior day’s value zone closing near the 5-day POC (20050). Range was 256 handles on 470k contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.2.24
…Transition from Cycle Day 1 to Cycle Day 2
The transition to Cycle Day 2 Current range boundaries are marked between 19820 – 20100 with 20050 providing the key fulcrum pivot. We’ll continue to use this level as today’s Line in the Sand (LIS) as bulls and bears battle for directional control.
Initial 3-Day Cycle Target (19985) was fulfilled in prior session, so bulls objective now will be to clear and convert 20100 cleanly for a “relief-rally” to gain traction for a recovery back to the 20215 handle. Bears on the other hand will be looking to force a break below 19875 – 19800 zone for shift down to lower value.
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 20050, initially targets 20135– 20215 zone.
Bear Scenario: Price sustains an offer below 20050, initially targets 19974 – 19898 zone.
PVA High Edge = 20076 PVA Low Edge = 19853 Prior POC = 20048
NQ Chart (Profile)
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