S&P 500 (ES)
Prior Session was Cycle Day 2: The expected MATD Rhythms unfolded during the AM Session as it was a “Rock’em Sock’em two-way auction, with the sellers maintaining the pressure. The 2pm Shake n Bake saw the bulls “slipping on the soap” losing traction, ultimately capitulating into the closing bell. Range for this session was 35 handles on 1.241M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 12.10.24
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Price is currently below the CD1 Low (6060) with odds (92.59%) favoring recovery back above during this session.
Today is the final CPI reading for the year as traders are discounting 85% chance of a 25 bps rate cut for the December.18th FED Meeting. Current target rate is 4.50 % – 4.75%
Price volatility can be very unpredictable during the CPI print, so we’ll maintain vigilance to the potential increased two-way activity.
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 6050, initially targets 6060 – 6065 zone.
Bear Scenario: Price sustains an offer below 6050, initially targets 6040 – 6035 zone.
PVA High Edge = 6073 PVA Low Edge = 6055 Prior POC = 6062
ES (Profile)
Nasdaq (NQ)
Prior Session was Cycle Day 2: Early morning strength gave bulls ample ammunition to push price higher increasing hopes for a strong reversal up. But to their surprise they were smoking too much “hopium” as price reversed unexpectedly lower.
Short-term traders continued to BTFD, while larger institutions continued to “feed the pigeons.” Once prior low gave way it was apparent that the accumulated longs were wrong-footed, ultimately succumbing to the “bricks on ticks” by liquidating positions into the closing bell. Range for this session was 254 handles on 528k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Price is currently below the CD1 Low (21436) with odds (92.59%) favoring recovery back above during this session.
Today is the final CPI reading for the year as traders are discounting 85% chance of a 25 bps rate cut for the December.18th FED Meeting. Current target rate is 4.50 % – 4.75%
Price volatility can be very unpredictable during the CPI print, so we’ll maintain vigilance to the potential increased two-way activity.
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 21410, initially targets 21455 – 21475 zone.
Bear Scenario: Price sustains an offer below 21410, initially targets 21370 – 21350 zone.
PVA High Edge = 21571 PVA Low Edge = 21441 Prior POC = 21469
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.
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