Trade Strategy 3.21.23

Markets (Top Stories)

Source: SeekingAlpha.com

Economic Calendar

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Price held bid above our stated Line-In-Sand (3950) outlined in prior DTS 3/20/23 briefing, demonstrating a “positive skew”, closing near highs of the day. Prior range was 92 handles on 1.745M contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): End of prior day’s price momentum favors continuation with 3 Day Cycle Target measuring 4013. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 3990, initially targets 4010 – 4015 zone. 

Bear Scenario: Price sustains an offer below 3990, initially targets 3965 – 3960 zone.

PVA High Edge = 3985       PVA Low Edge = 3958         Prior POC = 3883

Range Projections and Key Levels (ES) June 2023 (M) Contract

HOD  ATR Range Projection: 4073; LOD ATR Range Projection: 3922; 3 Day Central Pivot: 3962; 3 Day Cycle Target: 4013; 10 Day Average True Range  91; VIX: 23

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2 (CD2): Price produced a normal CD2 consolidation range day with a positive skew closing near highs of the day. Prior range was 224 handles on 777k contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): End of prior day’s price momentum favors continuation with upside target measuring 12852. As such, estimated scenarios to consider for today’s trading.  

Bull Scenario: IF Bulls sustains bid above 12680, THEN initial upside estimate targets 12770– 12780 zone.

Bear Scenario: IF Bears sustains offer below 12680, THEN initial downside estimate targets 12625 – 13615 zone.

PVA High Edge = 12677       PVA Low Edge = 12587     Prior POC = 12655

Range Projections and Key Levels (NQ) June 2023 (M) Contract

HOD  ATR Range Projection: 12980; LOD ATR Range Projection: 12445; 3 Day Central Pivot: 12640; 3 Day Cycle Target: 12962; 10 Day Average True Range: 302; VIX: 23

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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