S&P 500 (ES)
Prior Session was Cycle Day 1: Early rally faded against the initial target zone 5895 – 5905 as outlined in prior DTS Briefing 1.14.25. Selling rotation lower fulfilled the initial downside target zone between 5860 – 5855, finding stronger buy response at the IB TGT 2 (5848) level paired with the prior VWAP.
Two more rotational rhythmic range swings played during the afternoon session, closing mid-range. Clearly a session whereby traders vying for positioning ahead of the CPI print. Range for this session was 76 handles on 1.778M contracts exchanged.
FREE TRIAL link to PTG/Taylor Three Day Cycle
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 1.14.25
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: As outlined in the recap above, prior session was a notable rotational day as traders vying for positioning ahead of today’s CPI print.
Here is CPI Note: In November both the overall and core CPI rose 0.3 percent. This brings their increase over the last year to 2.7 percent and 3.3 percent, respectively.
Overall inflation had been running somewhat behind core inflation over the last year, as food inflation had slowed sharply and energy prices had been dropping. However, this was not the case in November. Prices for store-bought food rose 0.5 percent. This was driven by a 1.9 percent jump in the price of meat, an 8.2 percent rise in the price of eggs, and a 1.5 percent rise in the price of non-alcoholic beverages. These price hikes are being driven by some unusual factors, such as another resurgence of the Avian flu decimating the poultry stock.
We are not likely to see the same sorts of jumps for December and some of these hikes may be at least partially reversed. As a result, inflation in store-bought food should be more modest in December. Inflation for restaurant food was 0.3 percent in December. The index has risen 3.6 percent over the last year.
The energy index rose 0.2 percent in November, with a 0.6 percent rise in gas prices being the biggest factor. Gas prices fell modestly in December. As a result, this index should be close to flat.
On net this should mean that the non-core elements again rise less than the core CPI, with the two components rising 0.1-0.2 percent for the month.
by Dean Baker: Center for Economic and Policy Research
PTG does not make predictions…We only expect Mr. Market to offer an endless stream of opportunities to implement our trade strategies.
Nothing changes for PTG…Simply follow your plan.
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5875+-, initially targets 5895 – 5905 zone.
Bear Scenario: Price sustains an offer below 5875+-, initially targets 5855 – 5850 zone.
PVA High Edge = 5906 PVA Low Edge = 5866 Prior POC = 5892
ES (Profile)
Nasdaq (NQ)
Prior Session was Cycle Day 1: Early rally faded perfectly against the initial target zone 21095 – 21130 as outlined in prior DTS Briefing 1.14.25. Selling rotation lower found strong buy response at (20831) prior VWAP. Range for this session was 370 handles on 664k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: As outlined in the recap above, prior session was a notable rotational day as traders vying for positioning ahead of today’s CPI print.
Market’s reaction should provide traders a glimpse of the next direction lean, given recent rotational activity has been inconclusive.
Nothing changes for PTG…Simply follow your plan.
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 20940+-, initially targets 21095 – 21130 zone.
Bear Scenario: Price sustains an offer below 20940+-, initially targets 20830 – 20775 zone.
PVA High Edge = 21110 PVA Low Edge = 20897 Prior POC = 20992
NQ (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