Markets
US stocks edged mostly higher Wednesday as Wall Street embraced another encouraging signal on consumer prices that is set to help shape the near-term future of interest-rate policy. The S&P 500 (^GSPC) rose 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) finished just above the flatline. The Dow Jones Industrial Average (^DJI) gained 0.6%, or more than 200 points.
The Consumer Price Index (CPI) showed price increases held largely steady in July. Consumer prices rose 2.9% year-over-year in July, the first time headline inflation has dipped below 3% since 2021. On a “core” basis, stripping out costs of food and energy, prices rose 3.2% year over year. Both numbers largely met Wall Street forecasts.
Source: Yahoo Finance
Economic Calendar
S&P 500
Prior Session was Cycle Day 2: This cycle day’s trade plan unfolded near perfectly following the “no surprise” release of the core CPI report. Our plan as posted in prior DTS Briefing 8.14.24 called for holding 5445 Line in the Sand (LIS) as buy support, for an initial upside target of 5490 (Actual HOD ticked @ 5487.75). Markets then proceeded to ‘back and fill’ typical of a Cycle Day 2. Range was 49 handles on 1.242M contracts exchanged. Volatility (VIX) has contracted back to a more “normalized” 16 handle.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3: Price has surpassed 3 Day Cycle targets and is currently above CD1 Low (5367.50), so we’ll mark this session as a “wild-card.” Bulls continue to dominate control, so until they relinquish, the core plan is to stay aligned with the primary lean which is long, although we would not be surprised if a “sell-the-news” unfolds, given that all cycle targets have been achieved.
You Know The Drill! 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 5465, initially targets 5485 – 5490 zone.
Bear Scenario: Price sustains an offer below 5465, initially targets 5455 – 5445 zone.
PVA High Edge = 5474 PVA Low Edge = 5451 Prior POC = 5468
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 2: This cycle day’s trade plan unfolded near perfectly following the “no surprise” release of the core CPI report. Our plan as posted in prior DTS Briefing 8.14.24 called for holding 19070 Line in the Sand as buy support (Session’s POC), for an initial upside target of 19190 (Actual HOD ticked @ 19203). Markets then proceeded to ‘back and fill’ typical of a Cycle Day 2. Range was 278 handles on 542k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3: Price has surpassed 3 Day Cycle targets and is currently above CD1 Low (18628.50), so we’ll mark this session as a “wild-card.” Bulls continue to dominate control, so until they relinquish, the core plan is to stay aligned with the primary lean which is long, although we would not be surprised if a “sell-the-news” unfolds, given that all cycle targets have been achieved.
You Know The Drill! 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 19070, initially targets 19200 – 19250 zone.
Bear Scenario: Price sustains an offer below 19070, initially targets 18970 – 18925 zone.
PVA High Edge = 19143 PVA Low Edge = 19048 Prior POC = 19080
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