Trade Strategy 12.27.23

Markets (Top Stories)

Source: SeekingAlpha.com

Economic Calendar 

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

S&P 500

Prior Session was Cycle Day 3 (CD3):  Positive 3-Day Cycle as price continued to rally fulfilling CD3 Penetration Levels. Prior range was 34 handles on 626k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 4800. Holiday volumes are light, which favor the bulls and with the Santa Claus Rally under way, it may be best to trade lightly or enjoy the remainder of 2023 with the family. This is definitely NOT the time to be playing “catch-up” performance. Stay disciplined and in-alignment with intra-day forces. NO HEROES!  As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4820, initially targets 4835 – 4840 zone. 

Bear Scenario: Price sustains an offer below 4820, initially targets 4810 – 4805 zone.

PVA High Edge = 4827       PVA Low Edge = 4813        Prior POC = 4825

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

HOD  ATR Range Projection: 4870; LOD ATR Range Projection: 4784; 3 Day Central Pivot: 4802; 3 Day Cycle Target: 4848; 10 Day Average True Range  46; VIX: 13

Nasdaq 100 (NQ)

Prior Session was Cycle Day 3 (CD3):  Positive 3-Day Cycle as price continued to rally fulfilling CD3 Penetration Levels. Prior range was 146 handles on 286k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 16998. Holiday volumes are light, which favor the bulls and with the Santa Claus Rally under way, it may be best to trade lightly or enjoy the remainder of 2023 with the family. This is definitely NOT the time to be playing “catch-up” performance. Stay disciplined and in-alignment with intra-day forces. NO HEROES!  As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 17080, initially targets 17135 – 17145 zone. 

Bear Scenario: Price sustains an offer below 17080, initially targets 17045 – 17035 zone.

PVA High Edge = 17063       PVA Low Edge = 17005     Prior POC = 17048

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

HOD  ATR Range Projection: 17277; LOD ATR Range Projection: 16907; 3 Day Central Pivot: 16974; 3 Day Cycle Target: 17152; 10 Day Average True Range: 195; 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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