Trade Strategy 8.29.23

Markets (Top Stories)

Source: SeekingAlpha.com

Economic Calendar

https://www.investing.com/economic-calendar/

S&P 500

Prior Session was Cycle Day 2 (CD2): Normal Cycle Day 2 as price initially rallied, fulfilling our upside TZ (4435 – 4440), then rotated lower, successfully testing our Line-In-Sand (4425) multiple times, reinforcing this level a “key support.” Prior range was 35 handles on heavy 1.225M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Cycle targets have been fulfilled, as buyers remain in dominant control for the “unofficial” final week of summer. We will mark today as a “wild-card” for expanded upside potential or mean reversion  back into 5-day range are of balanced potentialities. Key Support is marked at 4425, so for today we’ll cautiously raise LIS to 4440 level. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4440, initially targets 4455 – 4462 zone. 

Bear Scenario: Price sustains an offer below 4440, initially targets 4425 – 4420 zone.

PVA High Edge = 4445       PVA Low Edge = 4430         Prior POC = 4440

Range Projections and Key Levels (ES) Sept 2023 (U) Contract

HOD  ATR Range Projection: 4498; LOD ATR Range Projection: 4393; 3 Day Central Pivot: 4418; 3 Day Cycle Target: 4418; 10 Day Average True Range  60; VIX: 15

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2 (CD2): Normal Cycle Day 2 as price initially rallied fulfilling our upside TZ (150750-015095), then rotated lower, successfully holding the 15000 level a “key support.” Prior range was 153 handles on heavy 583k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Cycle targets have been fulfilled, as buyers remain in dominant control for the “unofficial” final week of summer. We will mark today as a “wild-card” for expanded upside potential or mean reversion  back into 5-day range are of balanced potentialities. Key Support is marked at 15000, so for today we’ll cautiously raise LIS to 15075 level. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 15075, initially targets 15145 – 15170 zone. 

Bear Scenario: Price sustains an offer below 15075, initially targets 15030 – 15015 zone.

PVA High Edge = 15072       PVA Low Edge = 15000    Prior POC = 15016

Range Projections and Key Levels (NQ) Sept 2023 (U) Contract

HOD  ATR Range Projection: 15359; LOD ATR Range Projection: 14856; 3 Day Central Pivot: 15004; 3 Day Cycle Target: 15030; 10 Day Average True Range: 290; VIX: 15

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.” –Bruce Lee

*****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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