Trade Strategy 12.21.23

Markets (Top Stories)

Source: SeekingAlpha.com

Economic Calendar 

https://www.investing.com/economic-calendar/

S&P 500

Prior Session was Cycle Day 3 (CD3):  Upper Target Zone (4825 – 4830) as outlined in DTS 12.20.23 was fulfilled and ultimately “capped” the upside to this Positive 3-Day Cycle. Prior range was 87 handles on 1.623M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Prior session’s declined has pushed down to “key” 4750 level. We’ll be looking for stabilization from yesterday’s “liquidation break.” As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4750, initially targets 4770 – 4775 zone. 

Bear Scenario: Price sustains an offer below 4750, initially targets 4725 – 4720 zone.

PVA High Edge = 4830       PVA Low Edge = 4771        Prior POC = 4822

Range Projections and Key Levels (ES) March 2024 (H) Contract

HOD  ATR Range Projection: 4797; LOD ATR Range Projection: 4713; 3 Day Central Pivot: 4789; 3 Day Cycle Target: 4792; 10 Day Average True Range  46; VIX: 13

Nasdaq 100 (NQ)

Prior Session was Cycle Day 3 (CD3):  Upper Target Zone (17055 – 17075) as outlined in DTS 12.20.23 was fulfilled and ultimately “capped” the upside to this Positive 3-Day Cycle. Prior range was 315 handles on 643k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Prior session’s declined has pushed down to 16765 level. We’ll be looking for stabilization from yesterday’s “liquidation break.” As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 16800, initially targets 16885 – 16900 zone. 

Bear Scenario: Price sustains an offer below 16800, initially targets 16698 – 16680 zone.

PVA High Edge = 17073       PVA Low Edge = 16878     Prior POC = 17036

Range Projections and Key Levels (NQ) March 2024 (H) Contract

HOD  ATR Range Projection: 17006; LOD ATR Range Projection: 16597; 3 Day Central Pivot: 16920; 3 Day Cycle Target: 17120; 10 Day Average True Range: 216; VIX: 13

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.” –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.

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

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