S&P 500
Prior Session was Cycle Day 1: Normal Cycle Day 1 (CD1) as the expected decline unfolded on a liquidation break of the key 5895 Line in the Sand (LIS) and fulfilled 5875 lower target. Further break of the 75’s sold price to establish a new cycle low at 5850. Prior range was 65 handles on 1.276M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.15.24
Check out the link to learn more about the Taylor Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Market closed slightly off the session low at 5850, which will be used to measure the current cycle’s performance. Having closed low in the day’s range, selling momentum may spillover into today’s session before this cycle’s rally develops.
Key for today will be 5850 CD1 Low. IF bulls can hold and relief rally unfolds, levels to consider are 5875 – 5880. Full reclaim of 5895 would certainly place shorts on “squeeze-alert!” Bears currently have ball control and will be looking to press lower to force more long-liquidation. Break of 5850 opens trap door targeting 5835 – 5830 zone.
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 5850, initially targets 5875 – 5880 zone.
Bear Scenario: Price sustains an offer below 5850, initially targets 5835 – 5830 zone.
PVA High Edge = 5893 PVA Low Edge = 5859 Prior POC = 5980
ES (Chart Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Normal Cycle Day 1 (CD1) as the expected decline unfolded on a liquidation break of the key 20585 Line in the Sand (LIS) and established a new cycle low at 20254. Prior range was 405 handles on 509k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Market closed slightly off the session low at 20254, which will be used to measure the current cycle’s performance. Having closed low in the day’s range, selling momentum may spillover into today’s session before this cycle’s rally develops.
Key for today will be 20254 CD1 Low. IF bulls can hold and relief rally unfolds, levels to consider are 20400 – 20440. Full reclaim of 20495 would certainly place shorts on “squeeze-alert!” Bears currently have ball control and will be looking to press lower to force more long-liquidation. Break of 20254 opens trap door targeting 20143 – 20100 zone.
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 20254, initially targets 20400– 20440 zone.
Bear Scenario: Price sustains an offer below 20254, initially targets 20143 – 20100 zone.
PVA High Edge = 20448 PVA Low Edge = 20291 Prior POC = 20400
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