Markets (Top Stories)
Tech earnings are beginning to pour in and the market is watching. That’s because the largest tech companies in the S&P 500 (SP500), like the Magnificent 7, have been responsible for the majority of the index’s 11% YTD advance, which stalled in September and is still looking for its next catalyst. Meta Platforms (META) and Amazon (AMZN) are also set to report results this week, but the festivities kicked off in AH trading on Tuesday with two of the biggest players in the industry.
***Written Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Prior Session was Cycle Day 1 (CD1): We wrote in prior DTS 10.24.23 Briefing: “Markets are at their targets, therefore the rally could start at any time and may negate the ES failure.” As expected, markets rallied from the opening and negated yesterday’s failure. Prior range was 48 handles on 1.757M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Though the expected rally did unfold in prior session bulls could not sustain high bid, hence retreated back to the 5-day Point of Control (4265). Normal for CD2 is typically for some consolidation of recent activity. Two-way choppy flow is anticipated given both sides are battling for dominance. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4265, initially targets 4280 – 4285 zone.
Bear Scenario: Price sustains an offer below 4265, initially targets 4250 – 4245 zone.
PVA High Edge = 4277 PVA Low Edge = 4260 Prior POC = 4271
*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet > > Cycle Day 2 (CD2)
Range Projections and Key Levels (ES) December 2023 (Z) Contract
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): As expected, markets rallied from the opening and negated yesterday’s ES failure. Prior range was 242 handles on 696k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Though the expected rally did unfold in prior session bulls could not sustain high bid, hence retreated back to the 5-day Point of Control (14800). Normal for CD2 is typically for some consolidation of recent activity. Two-way choppy flow is anticipated given both sides are battling for dominance. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14800, initially targets 14885 – 14900 zone.
Bear Scenario: Price sustains an offer below 14800, initially targets 14705 – 14695 zone.
PVA High Edge = 14846 PVA Low Edge = 14769 Prior POC = 14806
Range Projections and Key Levels (NQ) December 2023 (Z) Contract
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!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****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