Trade Strategy 5.19.23

Markets (Top Stories)

Source: SeekingAlpha.com

Economic Calendar

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Continuation of this cycle’s breakout unfolded exceeding the Secondary Target Zone (4195-4205) outlined in previous DTS Briefings, closing on highs of the day (4215). Prior range was 57 handles on 1.507M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Cycle targets have been fulfilled as bulls maintain control. We’ll mark today as a “wild-card” for direction. It is also Options Expiration (OPEX), which could be the main influencer for today’s activity. Typically following directional “trend” moves, price seeks some levels of balance, which we describe as MATD (Market/Morning After Trend Day). NOTE: Trader friend created this acronym to describe this type session, but it is apropos.  As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4210, initially targets 4245 – 4255 zone. 

Bear Scenario: Price sustains an offer below 4210, initially targets 4200 – 4190 zone.

PVA High Edge = 4179       PVA Low Edge = 4140         Prior POC = 4170

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

HOD  ATR Range Projection: 4259; LOD ATR Range Projection: 4178; 3 Day Central Pivot: 4162; 3 Day Cycle Target: 4188; 10 Day Average True Range  47; VIX: 16

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2 (CD2): Continuation of this cycle’s breakout unfolded surpassing cycle targets. Prior range was 284 handles on 738k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Cycle targets have been fulfilled as bulls maintain control. We’ll mark today as a “wild-card” for direction. It is also Options Expiration (OPEX), which could be the main influencer for today’s activity. Typically following directional “trend” moves, price seeks some levels of balance, which we describe as MATD (Market/Morning After Trend Day). NOTE: Trader friend created this acronym to describe this type session, but it is apropos.  As such, estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 13885, THEN initial upside estimate targets 14000– 14025 zone.

Bear Scenario: IF Bears sustains offer below 13885, THEN initial downside estimate targets 13845 – 13825 zone.

PVA High Edge = 13888       PVA Low Edge = 13723    Prior POC = 13813

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

HOD  ATR Range Projection: 14066; LOD ATR Range Projection: 13780; 3 Day Central Pivot: 13635; 3 Day Cycle Target: 13738; 10 Day Average True Range: 180; VIX: 16

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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