S&P 500 (ES)
Prior Session was Cycle Day 1: Textbook Cycle Day 1 as price declined to the projected 6103 lower target as which time found responsive buyers. Following a pullback retest, securing the low, this cycle’s rally began, rebounding to close at 6133. Range for this session was 56 handles on 1.337M contracts exchanged.
FREE TRIAL link to PTG/Taylor Three Day Cycle
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 2.18.25
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Part of this cycle’s rally is in-place, so we should be looking for some two-way consolidation to absorb the prior session’s “dip n rip.”
Given the nature of recent rangebound activity, we should not be surprised if price dips again for another test, or continue to rally to next targets. Bottom line is to remain flexible as Friday is “Gravy Day!”
***Options Expiration Note: According to the “Gamma Guys” (spotgamma.com) 6165 SPX (6140 ES) is a prominent strike for today’s expiry. Quote: “6165 remains the most important [positive gamma] strike. This is not automatically because it is the JHEQX (JPM Collar) short call, but because our tools are measuring this fund’s call strike to be highly impactful right now. It also stands at the gateway of a snap melt-up to 6200, as the price can easily and swiftly slice right through that [red] negative gamma.”
Additionally from the Gamma Guys: “to emphasize the sudden attention on 6165, it is dominating both the live and static models, with the SPX-Combo model finding 6163 as the heaviest average gamma strike between them. The implication that this has for our trading over the next five weeks is that it should produce a handful of repeatable pinning setups.”
Of course, nothing changes for PTG…Simply follow your plan. Take only Triple A setups and manage the $risk. ALWAYS HAVE HARD STOP-LOSSES in-place on the exchange.
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 6135+-, initially targets 6150 – 6155 zone.
Bear Scenario: Price sustains an offer below 6135+-, initially targets 6115 – 6110 zone.
PVA High Edge = 6138 PVA Low Edge = 6112 Prior POC = 6137
ES (Profile)
Nasdaq (NQ)
Prior Session was Cycle Day 1: Textbook Cycle Day 1 as price declined to the projected 21993 lower target as which time found responsive buyers. Following a pullback retest, securing the low, this cycle’s rally began, rebounding to close at 22135.75. Range for this session was 284 handles on 555k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Part of this cycle’s rally is in-place, so we should be looking for some two-way consolidation to absorb the prior session’s “dip n rip.” Bottom line is to remain flexible as Friday is “Gravy Day!”
Here is some MAG7 Basket Flows from the “Gamma Guys” (spotgamma.com)
“There was a rare and heavy disparity between index and basket flows today, but although with different shapes they were both guiding prices toward the center of the range The opening signal was extremely clear with basket flows, as calls peaked and then quickly dropped almost vertically. The taller and pointier these signals are, the stronger they are at inferring immanent pivots.”
“As this happened, shorts knew to wait for a material change in pattern (or momentum) before covering. Calls tried to bounce again, but HIRO quickly dismissed this as another low-conviction surge, as calls rolled over into heavy exhaustion, which was preventing prices from climbing meaningfully. Put flows also stabilized early, which set the stage for another end-of-day ramp, which has been a frequent event lately.”
Of course, nothing changes for PTG…Simply follow your plan. Take only Triple A setups and manage the $risk. ALWAYS HAVE HARD STOP-LOSSES in-place on the exchange.
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 22125+-, initially targets 22195 – 22225 zone.
Bear Scenario: Price sustains an offer below 22125+-, initially targets 22050 – 22011 zone.
PVA High Edge = 22135 PVA Low Edge = 22002 Prior POC = 22050
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.”
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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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