Trade Strategy 6.10.24

Posted on by June 9, 2024

Markets (Top Stories)

It’s a big test this week to see what holds the most sway on the markets. Is it the Fed or AI? The Federal Reserve’s June decisions arrives, along with its updated projections for the path of interest rates, inflation and economic growth.

The Fed statement and Chairman Jerome Powell’s press conference are due on Wednesday. With the market pricing in a near certainty of no move on rates, the dot plot will be the main focus coming off the strong May jobs figures. The markets are now pricing in only one quarter-point cut in 2024, with the odds of a September quarter-point cut falling to 50/50.

Before the bell on Wednesday, the market gets the May CPI figures. Economists forecast a 0.3% month-over-month increase in the core inflation rate and a drop in the annual rate to +3.5% from +3.6%. A significantly hotter or cooler number could see some volatile repositioning, especially in bonds, ahead of the afternoon Fed release.

Source: investing.com

Economic Calendar

S&P 500

Prior Session was Cycle Day 2: Normal CD2 as price declined testing and finding responsive buyers from the 3 Day Central Pivot Zone (5338 – 5326), rally back up to DTS Briefing 6.7.24 target zone (5380 – 5385), before settling back to 5353 to close the week’s trading activity. Range was 56 handles on 1.495M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3: BIG upcoming events for this week are the CPI and FOMC both on Wednesday. Market activity is expect to be in a “holding-pattern” as traders will be patient on committing to new positions ahead of these key releases. Current range is defined as 5330 – 5380 (50 handles). As always, you know the plan…Stay aligned with dominant intra-day forces.

As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 5365, initially targets 5380 – 5385 zone. 

Bear Scenario: Price sustains an offer below 5365, initially targets 5340 – 5335 zone.

PVA High Edge = 5371       PVA Low Edge = 5351         Prior POC = 5358

 

PTG 3 Day Cycle

EXCLUSIVE OFFER

*****The 3 Day Cycle has a 91.67% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history. 

    Range Projections (ES) June 2024 (M)

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2: Normal CD2 as price declined testing and finding responsive buyers from the 19017 – 19003 target zone and then rallied to our upper 19140 target as outlined in prior DTS Briefing 6.7.24. Range was 215 handles on 603k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3: BIG upcoming events for this week are the CPI and FOMC both on Wednesday. Market activity is expect to be in a “holding-pattern” as traders will be patient on committing to new positions ahead of these key releases. Current range is defined as 18940 – 19155. As always, you know the plan…Stay aligned with dominant intra-day forces.

As such, scenarios to consider for today’s trading.

.Bull Scenario: Price sustains a bid above 19067, initially targets 19140– 19155 zone. 

Bear Scenario: Price sustains an offer below 19067, initially targets 19000 – 18970 zone.

PVA High Edge = 19091       PVA Low Edge = 19011         Prior POC = 19036

Range Projections (NQ) June 2024 (M)

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.

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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