S&P 500

Prior Session was Cycle Day 2: Morning “relief rally” stalled and reversed from 5802, reverting back to the opening range zone during the afternoon session. Overall it was normal Cycle Day 2 MATD rhythms. Range was 71 handles on 1.516M contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

Transition into Cycle Day 3: Positive 3-Day Cycle Statistic (92%) will be satisfied with price trading above 5733 CD1 Low during RTH.

Captain Obvious states: “It’s going to be a “busy” trading week with potential for explosive volatility.” Presidential Election…FOMC Statement and Presser.

Weekly close near the low places the Bulls on the defensive from letting markets slip further.

Job # 1 is “prevent defense” by absorbing any spill-over selling from last week.

Job # 2 will be to Clear and Convert (CnC) 5770 handle to upper support.

Job #3 will be to reclaim 5802 prior session’s rejection.

Bears will be gunning to force long liquidation below prior week low for a press into 5700 handle.

YOU KNOW THE DRILL!

We’ll continue to remain true to our discipline in maintaining positioning that is aligned with market forces which 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 5755, initially targets 5770 – 5775 zone. 

Bear Scenario: Price sustains an offer below 5755, initially targets 5735 – 5730 zone.

PVA High Edge = 5785     PVA Low Edge = 5752         Prior POC = 5760

   ES (Profile-Weekly)

 

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2: Morning “relief rally” stalled and reversed from 20285, reverting back to the midpoint zone during the afternoon session. Overall it was normal Cycle Day 2 MATD rhythms. Range was 271 handles on 538k contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

Transition into Cycle Day 3: Positive 3-Day Cycle Statistic (92%) will be satisfied with price trading above 20008 CD1 Low during RTH.

Job # 1 is “prevent defense” by absorbing any spill-over selling from last week.

Job # 2 will be to Clear and Convert (CnC) 20200 handle to upper support.

Job #3 will be to reclaim 20285 prior session’s rejection.

Bears will be gunning to force long liquidation below prior low for a press into 20000 handle.

YOU KNOW THE DRILL!

As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 20100, initially targets 20200– 20285 zone. 

Bear Scenario: Price sustains an offer below 20100, initially targets 20000 – 19957 zone.

PVA High Edge = 20257      PVA Low Edge = 20137         Prior POC = 20162

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.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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