Trade Strategy 8.3.23

Markets (Top Stories)

Big Tech – Part 2

Last week saw the first round of results from the Big Tech giants, with accelerating growth at Google (GOOGGOOGL), Meta’s (META) focus on artificial intelligence, and worries about capex at Microsoft (MSFT). Up next are the quarterly numbers from Apple (AAPL) and Amazon (AMZN), which will arrive after today’s closing bell. Investors and economists alike will be eyeing the figures of the two companies that have a global workforce in the millions, consumer and business revenues in the billions, and market caps that keep going further into the trillions.

Source: SeekingAlpha.com

Economic Calendar

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Price violated support (4590) triggering a volatility derived selling day, driving price progressively lower throughout the session. In the end ES dropped -1.39%. Prior range was 65 handles on 1.834M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price has extended the downside hitting CD3 Violation Level (4514), but has since rebounded back to PL (4527.75). We’ll mark 4530 as today’s LIS as bulls have a tall order to recover CD1 Low (4591) to avert a “failed cycle.”  As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4530, initially targets 4550 – 4555 zone. 

Bear Scenario: Price sustains an offer below 4530, initially targets 4515 – 4510 zone.

PVA High Edge = 4559       PVA Low Edge = 4529         Prior POC = 4541

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

HOD  ATR Range Projection: 4553; LOD ATR Range Projection: 4504; 3 Day Central Pivot: 4588; 3 Day Cycle Target: 4650; 10 Day Average True Range  43; VIX: 16

Nasdaq 100 (NQ)

Prior Session was Cycle Day 2 (CD2): Price violated support (15628) triggering a volatility derived selling day, driving price progressively lower throughout the session. In the end NQ dropped -2.19%. Prior range was 375 handles on 753k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price has extended the downside hitting CD3 Violation Level (15360), but has since rebounded back to PL (15414). We’ll mark 15414 as today’s LIS as bulls have a tall order to recover CD1 Low (15728) to avert a “failed cycle.”  As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 15414, initially targets 15510 – 15560 zone. 

Bear Scenario: Price sustains an offer below 15414, initially targets 15340 – 15285 zone.

PVA High Edge = 15603       PVA Low Edge = 15414    Prior POC = 15492

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

HOD  ATR Range Projection: 15598; LOD ATR Range Projection: 15248; 3 Day Central Pivot: 15740; 3 Day Cycle Target: 16026; 10 Day Average True Range: 258; VIX: 16

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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