S&P 500
Prior Session was Cycle Day 1: Price established this cycle’s low at 5561.25 during the GBX opening range, then began a non-stop rally straight into RTH, ultimately fulfilling the 5653 Three-Day Cycle Target. Afternoon liquidity break settled price essentially near the weekly midpoint (5620). Range was 65 handles on 1.238M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Final day for the official summer, as traders look ahead to the long Labor Day weekend. August is “in-the-books”, so expectation for this session will be “thin-to-win” rhythms, given that price is sitting mid-zone of the weekly range.
Being a Cycle Day 2 (CD2) normal expectation will be for balancing within the recent parameters between 5665 – 5575. Lots of room to maneuver should the ALGO’s want to “run-wild”, so be prudent with your trading.
FRYDAY…END OF MONTH = CAPITAL PRESERVATION DAY!
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 5620, initially targets 5640 – 5645 zone.
Bear Scenario: Price sustains an offer below 5620, initially targets 5600 – 5595 zone.
PVA High Edge = 5662 PVA Low Edge = 5619 Prior POC = 5633
ES Chart
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Price established this cycle’s low at 19140.25 during the GBX opening range, then began a non-stop rally straight into RTH, ultimately fulfilling the 19580.50 Three-Day Cycle Target. Afternoon liquidity break settled price essentially near the weekly midpoint (19440). Range was 553 handles on 457k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Final day for the official summer, as traders look ahead to the long Labor Day weekend. August is “in-the-books”, so expectation for this session will be “thin-to-win” rhythms, given that price is sitting mid-zone of the weekly range.
Being a Cycle Day 2 (CD2) normal expectation will be for balancing within the recent parameters between 5665 – 5575. Lots of room to maneuver should the ALGO’s want to “run-wild”, so be prudent with your trading.
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 19454, initially targets 19560 – 19600 zone.
Bear Scenario: Price sustains an offer below 19454, initially targets 19304 – 19266 zone.
PVA High Edge = 19692 PVA Low Edge = 19454 Prior POC = 19545
NQ Chart
Economic Calendar
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