Trade Strategy 7.17.24

Markets

Economic Calendar

 S&P 500

Prior Session was Cycle Day 2: Normal CD2 unfolded as MATD rhythm was the main theme for this session. Returning traders from lunch decided to get aggressive and orchestrate an upside breakout in K-Period (2:30 – 3:00) which held subsequent pullbacks, to close price near highs of the day. Range was 48 handles on 1.419M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3 

This leads us into Cycle Day 3 Primary Three-Day Cycle Target (5708) has been fulfilled so with bulls remaining firmly in-control we’ll mark today as a “wild-card.” Dow Jones (YM) was higher in excess of 700 points yesterday, while NAZ (NQ) seems to be the fly in the ointment, uncharacteristically. (see more on NQ below).

You Know The Plan! Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.

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

Bull Scenario: Price sustains a bid above 5708, initially targets 5720 – 5730 zone. 

Bear Scenario: Price sustains an offer below 5708, initially targets 5695 – 5690 zone.

PVA High Edge = 5707      PVA Low Edge = 5690         Prior POC = 5699

 

PTG 3 Day Cycle

EXCLUSIVE OFFER

*****The 3 Day Cycle has a 91.30% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history. 

    Link to: Dynamic Range Projections (ES) Sept (U) 2024

ES Chart

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2: CD2 normal unfolded during this session as price oscillated between CD1 Low (20506) and upper edge (20625) of the 3-Day Central Pivot Zone. While ES & YM showed relative strength, NQ is uncharacteristically struggling. Range was 220 handles on 621k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3 

This leads us into Cycle Day 3: As long as price trades above CD1 Low (20506.25) a positive 3-Day Cycle will be secured, then anything goes directionally. Also of note, Small Caps (Russell 2000) rallied for more than 3% for its fifth straight day of gains. Is this hinting of some asset rotation? 

You Know The Plan! Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.

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

Bull Scenario: Price sustains a bid above 20575, initially targets 20625 – 20650 zone. 

Bear Scenario: Price sustains an offer below 20575, initially targets 20510 – 20500 zone.

PVA High Edge = 20983       PVA Low Edge = 20478         Prior POC = 20680

Link to: Dynamic Range Projections (NQ) Sept (U) 2024

NQ Chart

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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