S&P 500
Prior Session was Cycle Day 1: Price established a new cycle low @ 5857 in a very quiet narrow range trading session with anemic volume.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.28.24
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: Price continues to be “range-mode” with lagging volumes and low volatility, which is beginning to frustrate intra-day and swing traders.
As we all are keenly aware, markets rotate from contractionary periods (range) to expansionary periods (trend). We also know that markets spend the majority of the time in contraction (range) consolidations as it is continually absorbing incoming information from a plethora of sources. Building up energy for the next expansionary (trend) period.
Our job is to defer to the current rhythms and exercise patience, perhaps by reviewing our trade plans and preparing for the various scenarios that could unfold and how we are going to respond. Make useful of the quiet contraction period, so as to be prepared for the inevitable expansion period.
This week is fulfilled with Tech Earnings Reports which is anticipated to be the main driver of market activity. We’ll continue to remain 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 5860, initially targets 5880 – 5885 zone.
Bear Scenario: Price sustains an offer below 5860, initially targets 5845 – 5840 zone.
PVA High Edge = 5874 PVA Low Edge = 5862 Prior POC = 5870
ES (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Price established a new cycle low @ 20486 in a very quiet narrow range trading session with anemic volume.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.28.24
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Price continues to be “range-mode” with lagging volumes and low volatility, which is beginning to frustrate intra-day and swing traders.
As we all are keenly aware, markets rotate from contractionary periods (range) to expansionary periods (trend). We also know that markets spend the majority of the time in contraction (range) consolidations as it is continually absorbing incoming information from a plethora of sources. Building up energy for the next expansionary (trend) period.
Our job is to defer to the current rhythms and exercise patience, perhaps by reviewing our trade plans and preparing for the various scenarios that could unfold and how we are going to respond. Make useful of the quiet contraction period, so as to be prepared for the inevitable expansion period.
This week is fulfilled with Tech Earnings Reports which is anticipated to be the main driver of market activity. We’ll continue to remain 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 20485, initially targets 20655– 20705 zone.
Bear Scenario: Price sustains an offer below 20485, initially targets 20430 – 20365 zone.
PVA High Edge = 20602 PVA Low Edge = 20514 Prior POC = 20537
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