S&P 500
Prior Session was Cycle Day 1: Price established a new cycle low at 5990.25 early in the session, which supported continued buying and extending the current trend to fulfill upside cycle targets. Range for today was 50 handles on 1.055M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 11.8.24
Check out the link to learn more about the Taylor 3-Day Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Bulls closed the previous week with new all-time highs having expanded the weekly range over 316 handles. As this week begins, it would be of no surprise that a bit of pullback /consolidation take place to absorb a record-breaking week and establish a new two-way balanced value zone.
Risk of sharp pullback/decline is now elevated given impactful news events (Election…FOMC) are now in the rearview mirror. Profit-taking becomes a real possibility should the FOMO buyers decide to take a step back.
So with this in mind, our “game-play” will 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 6025, initially targets 6035 – 6040 zone.
Bear Scenario: Price sustains an offer below 6025, initially targets 6015 – 6010 zone.
PVA High Edge = 6037 PVA Low Edge = 6012 Prior POC = 6025
ES (Weekly Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Price established a new cycle low at 21121.75 early in the session, which supported continued buying. Range for today was 143 handles on 394k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Bulls closed the previous week with new all-time highs. As this week begins, it would be of no surprise that a bit of pullback /consolidation take place to absorb a record-breaking week and establish a new two-way balanced value zone.
Risk of sharp pullback/decline is now elevated given impactful news events (Election…FOMC) are now in the rearview mirror. Profit-taking becomes a real possibility should the FOMO buyers decide to take a step back.
So with this in mind, our “game-play” will 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 21220, initially targets 21275– 21305 zone.
Bear Scenario: Price sustains an offer below 21220, initially targets 21180 – 21130 zone.
PVA High Edge = 21235 PVA Low Edge = 21183 Prior POC = 21220
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