S&P 500
Prior Session was Cycle Day 3: Another outstanding Three-Day Cycle as the Statistic (90%) was satisfied as well as Cycle Target (5486) fulfilled with today’s extended rally to the CD3 Penetration Level (5506). Range was 57 handles on 1.454M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures (5426). Price continues to be in “relief-rally” mode from last week’s sell down.
Today’s BIG Event is the CPI release and is key to the FED’s decision on rate cut for September. Expectation is for a high degree of volatility that could go either way, so we will play it “close to the vest” and let Mr. Market provide us proper directional guidance.
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 5505, initially targets 5520 – 5530 zone.
Bear Scenario: Price sustains an offer below 5505, initially targets 5480 – 5465 zone.
PVA High Edge = 5504 PVA Low Edge = 5478 Prior POC = 5496
ES Chart (Target Master)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: Another outstanding Three-Day Cycle as the Statistic (90%) was satisfied as well as Cycle Target (18777) fulfilled with today’s extended rally to the CD3 Penetration Level (18842). Range was 296 handles on 528k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures (18757). Price continues to be in “relief-rally” mode from last week’s sell down.
Today’s BIG Event is the CPI release and is key to the FED’s decision on rate cut for September. Expectation is for a high degree of volatility that could go either way, so we will play it “close to the vest” and let Mr. Market provide us proper directional guidance.
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 18840, initially targets 18940 – 19030 zone.
Bear Scenario: Price sustains an offer below 18840, initially targets 18745 – 18650 zone.
PVA High Edge = 18796 PVA Low Edge = 18638 Prior POC = 18758
NQ Chart (Target Master)
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