S&P 500
Prior Session was Cycle Day 1: This session’s trade plan played out near perfect as price declined establishing a new cycle low at 5734.25. This level will be used as the benchmark for this cycle’s performance and will be marked as the key Line in the Sand (LIS). Range was 74 handles on 1.138M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.7.24
…Transition from Cycle Day 1 to Cycle Day 2
The transition to Cycle Day 2: With price near the lows, today’s trading is pivotal. The Bulls’ objective is to reclaim and hold above the 5750–5760 zone to regain upward momentum. If they succeed, it could shift the tone back to the upside. On the other hand, the Bears will attempt to break the 5740–5735 area, today’s Line in the Sand (LIS) to drive price lower towards the 5725–5715 zone, signaling a deeper correction.
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 5735, initially targets 5755 – 5760 zone.
Bear Scenario: Price sustains an offer below 5735, initially targets 5715 – 5700 zone.
PVA High Edge = 5807 PVA Low Edge = 5756 Prior POC = 5781
ES Chart (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: This session’s trade plan played out near perfect as price declined establishing a new cycle low at 19948. This level will be used as the benchmark for this cycle’s performance. Range was 319 handles on 443k contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.7.24
…Transition from Cycle Day 1 to Cycle Day 2
The transition to Cycle Day 2: With the market closing near the lows, today’s trading could bring continued pressure. The Bulls’ focus will be on defending and reclaiming the 20025–20060 zone to regain control. Meanwhile, the Bears will aim to push price below the 19950–19875 zone, potentially leading to a deeper move toward the 19780–19775 area, signaling a stronger downside extension.
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 19950, initially targets 20025– 20060 zone.
Bear Scenario: Price sustains an offer below 19950, initially targets 19780 – 19775 zone.
PVA High Edge = 20190 PVA Low Edge = 20058 Prior POC = 20150
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.
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