Markets
Stocks close mixed as investors await key economic data
US stocks closed mixed on Monday as investors look ahead to a full week full of key economic data, highlighted by July’s Consumer Price Index (CPI) on Wednesday.
The benchmark S&P 500 (^GSPC) hugged the flat line while the tech-heavy Nasdaq Composite (^IXIC) rose about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) dropped roughly 0.4%, or less than 150 points.
Source: Yahoo Finance
Economic Calendar
Source: Investing.com
S&P 500
Prior Session was Cycle Day 3: Positive Three-Day Super Cycle as price hit our upside target 5395 (Actual HOD: 5396.75) as outlined in prior DTS Briefing 8.12.24. The remainder of the session was choppy non-directional activity. Range was 49 handles on 1.165M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: This session begins a new cycle with primary objective to find a secure low from which to stage the next rally. Markets are still in “pause-mode” ahead of the all-important CPI print Wednesday. Today’s release of Producer Price Index (PPI) will be a “dress-rehearsal” for the main-event. Expectation is for “more-of-the-same”, so stay disciplined and flexible.
NOTE: It is A-OK to Sit on Hands (SOH) if the market rhythms are “wonky” and/or your primary A+++ trade setup is non-existent. We trade to grow our equity curve, not to fulfil an insatiable need for action.
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 5370, initially targets 5390 – 5395 zone.
Bear Scenario: Price sustains an offer below 5370, initially targets 5350 – 5345 zone.
PVA High Edge = 5380 PVA Low Edge = 5358 Prior POC = 5367
PTG 3 Day Cycle
EXCLUSIVE OFFER
*****The 3 Day Cycle has a 90% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
ES Chart
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: Positive Three-Day Super Cycle as price hit our upside target 19722 as outlined in prior DTS Briefing 8.12.24. The remainder of the session was choppy non-directional activity. Range was 250 handles on 464k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: This session begins a new cycle with primary objective to find a secure low from which to stage the next rally. Markets are still in “pause-mode” ahead of the all-important CPI print Wednesday. Today’s release of Producer Price Index (PPI) will be a “dress-rehearsal” for the main-event. Expectation is for “more-of-the-same”, so stay disciplined and flexible.
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 18628, initially targets 18728 – 18765 zone.
Bear Scenario: Price sustains an offer below 18628, initially targets 18560 – 18545 zone.
PVA High Edge = 18695 PVA Low Edge = 18595 Prior POC = 18628
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.
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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