S&P 500 (ES)
Prior Session was Cycle Day 2: Normal CD2 unfolded as price initially gap opened below CD1 Low (5655.25) trading lower to successfully retest the 5600 pivot. Buyers then drove price higher to fill the open gap, only to trade back down into the closing bell.
Although it was somewhat of a “wonky” rhythmic day, structural levels remained true, offering opportunistic disciplined traders superior trading profitunities.
The undisciplined trader simply got their proverbial arse handed to them, chasing moves up and down relentlessly, playing the winner/loser game. Range was 80 points on 1.245 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 5.6.25
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: As long as price is above the CD1 Low (5655.25) the Positive 3 Day Statistic (89%) will be satisfied.
Today is “FED DAY” (FOMC) with the JPOW Presser to follow @ 2:30 EDT.
The Federal Reserve is widely expected to maintain its benchmark interest rate at the current range of 4.25% to 4.50% during its upcoming decision on Wednesday, May 7, 2025. According to the CME Group’s FedWatch Tool, there’s a 97.8% probability that the Fed will hold rates steady .Investopedia+1Investopedia+1CBS News+1Investopedia+1
Despite President Trump’s calls for rate cuts to stimulate economic growth, the Fed remains cautious. Inflationary pressures, partly due to recent tariffs, have kept inflation above the Fed’s 2% target, with consumer inflation at 2.4% year-over-year in March and a one-year outlook projecting 6.5% . Additionally, the economy shows resilience, with strong job growth in April and the S&P 500 trading at 21 times forward earnings, suggesting that immediate rate cuts may not be necessary .CBS News+4MarketWatch+4Investopedia+4Business Ins
Looking ahead, the Fed’s next meetings are scheduled for June 17-18 and July 29-30. While a rate cut in June appears unlikely, with a 70% probability of rates remaining unchanged, the July meeting shows an 80% chance of a potential rate cut, depending on economic data . https://www.kiplinger.com/news/live/may-fed-meeting-updates-and-commentary-2025?utm_source=chatgpt.com
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 5670+-, initially targets 5705 – 5720 zone.
Bear Scenario: Price sustains an offer below 5670+-, initially targets 5655 – 5645 zone.
PVA High Edge = 5648 PVA Low Edge = 5622 Prior POC = 5642
ESM
Nasdaq (NQ)
Prior Session was Cycle Day 2: Normal CD2 unfolded as price initially gap opened below CD1 Low (19966) trading lower to successfully retest the 19740 pivot. Buyers then drove price higher to fill the open gap, only to trade back down into the closing bell respecting the 19822 Open Range Midpoint. Range was 297 points on 509k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: As long as price is above the CD1 Low (19966) the Positive 3 Day Statistic (89%) will be satisfied.
Anticipation is high for increased “merry-go-round” trading today with the FED’s JPOW Presser.
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 20036+-, initially targets 20200 – 20240 zone.
Bear Scenario: Price sustains an offer below 20036+-, initially targets 19966 – 19900 zone.
PVA High Edge = 19949 PVA Low Edge = 19839 Prior POC = 19900
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.”
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.
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