S&P 500 (ES)
Prior Session was Cycle Day 1: Morning rally filled the gap to 5955, then all hell broke loose as a weak 20Y Bond Auction sent US Treasury Yields soaring.
Equity markets took an immediate nose-dive and never recovered, close in the lower quartile of the day’s range, establishing a new Cycle Day 1 Low @ 5847.75.
Coming off the heels of a fresh Moody’s Debt Downgrade has investors and traders reassessing their risk-models ahead of the long Memorial Holiday Weekend.
Range for this session was 110 handles on 1.469M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 5.21.25
FREE TRIAL link to PTG/Taylor Three Day Cycle
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Typically for CD2 we would be anticipating MATD trading range rhythms to consolidate prior liquidation break sell-down.
Key of today is how the market responds after the initial shock of a poor 20Y Bond Auction and the Equity Markets selloff.
Continuation lower or Consolidation within context of larger degree uptrend.
Decisions: BUY? SELL? RANGE? TREND? Let’s consult the Rubik’s Trading Cube!
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 5855+-, initially targets 5870 – 5875 zone.
Bear Scenario: Price sustains an offer below 5855+-, initially targets 5830 – 5825 zone.
PVA High Edge = 5953 PVA Low Edge = 5883 Prior POC = 5948
ESM
Nasdaq (NQ)
Prior Session was Cycle Day 1: Morning rally filled the upside target zone 21525 – 21565 outlined in the DTS Briefing 5.21.25., then all hell broke loose as a weak 20Y Bond Auction sent US Treasury Yields soaring and a Liquidation Break in Equities. Range for this session was 485 handles on 597k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: Typically for CD2 we would be anticipating MATD trading range rhythms to balance the recent liquidation break.
The MAGS Merry-Ground Round will be spinning today as investors/traders assess the sell-down to determine whether this is a fantastic BTFD or time for Risk-Off re-positioning.
The upcoming long Memorial Day Weekend will begin to factor holding times on current positioning.
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 21175+-, initially targets 21250 – 21320 zone.
Bear Scenario: Price sustains an offer below 21175+-, initially targets 21110 – 21070 zone.
PVA High Edge = 21423 PVA Low Edge = 21163 Prior POC = 21388
NQM
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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