Trade Strategy 12.5.23

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 statistic was fulfilled, as price traded above the CD1 Low during RTH Session. Prior range was 51 handles on 1.725M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 4569.50 which has been fulfilled. Price has settled back into the mid point of the multi-day composite range between 4500 – 4600 established on the mid-November breakout. Bulls need to gain price acceptance above 4575 and maintain a sustained bid to retest recent highs above 4600. Bears are seeking acceptance below 4555 to force a liquidation down to 4500. As always, we will continue to stay aligned with the intra-day rhythms the market provides. As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4575, initially targets 4590 – 4595 zone. 

Bear Scenario: Price sustains an offer below 4555, initially targets 4535 – 4530 zone.

PVA High Edge = 4579       PVA Low Edge = 4565        Prior POC = 4570

Range Projections and Key Levels (ES) December 2023 (Z) Contract

HOD  ATR Range Projection: 4603; LOD ATR Range Projection: 4538; 3 Day Central Pivot: 4578; 3 Day Cycle Target: 4625; 10 Day Average True Range  35; VIX: 13

Nasdaq 100 (NQ)

Prior Session was Cycle Day 3 (CD3):  Positive 3-Day Cycle statistic was fulfilled, as price traded above the CD1 Low during RTH Session. Prior range was 282 handles on 685k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 15807 which has been fulfilled. Price has “looked below” the low end of the mid-November breakout and reversed back into the multi-day composite range. Bulls need to gain price acceptance above 15890 and maintain a sustained bid to push to regain 16000 handle. Bears are seeking to continue forcing long liquidation to close the breakout gap. As always, we will continue to stay aligned with the intra-day rhythms the market provides. As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 15830, initially targets 15920 – 15940 zone. 

Bear Scenario: Price sustains an offer below 15830, initially targets 15770 – 15730 zone.

PVA High Edge = 15881       PVA Low Edge = 15776     Prior POC = 15826

Range Projections and Key Levels (NQ) December 2023 (Z) Contract

HOD  ATR Range Projection: 16047; LOD ATR Range Projection: 15660; 3 Day Central Pivot: 15937; 3 Day Cycle Target: 16124; 10 Day Average True Range: 203; 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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