S&P 500
Prior Session was Cycle Day 3: Positive Three-Day Cycle as price rallied to fulfill the 5750 target on the heels of a 50 bps rate cut by Uncle Jay. Please review prior DTS Briefing 9.18.24 where we outlined the FOMC Trading Strategy, with all the key levels needed to be prepared for the BIG event. Range was 80 handles on 1.445M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Today begins a new Cycle with the average Decline measuring (5669). Price is trading at the upper edge multi-day composite value area marked by 5680 lower edge and 5715 upper edge. Mr. Market will now need to absorb the implications of the 50 bps rate cut and decide which directional breakout it will choose. In the meantime, we will continue to conduct our daily trading a usual, focusing on core structural patterns with favorable reward-to-risk opportunities.
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 5715, initially targets 5735 – 5740 zone.
Bear Scenario: Price sustains an offer below 5700, initially targets 5685 – 5680 zone.
PVA High Edge = 5711 PVA Low Edge = 5681 Prior POC = 5700
ES Chart (Multi-Day Composite Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: Positive Three-Day Cycle as price rallied to fulfill the 19890 CD3 Penetration target zone as well as 19596 – 19548 lower target zone as outlined in the prior DTS Briefing 9.18.24. Absolutely perfect Level-2-Level range edge parameters to help our traders navigate the volatile FOMC craziness. Range was 342 handles on 507k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Today begins a new Cycle with the average Decline measuring (19560). Price is trading at the upper edge the multi-day composite value area marked by 19570 lower edge and 19750 upper edge. Mr. Market will now need to absorb the implications of the 50 bps rate cut and decide which directional breakout it will choose. In the meantime, we will continue to conduct our daily trading a usual, focusing on core structural patterns with favorable reward-to-risk opportunities.
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 19750, initially targets 19840 – 19900 zone.
Bear Scenario: Price sustains an offer below 19660, initially targets 19570 – 19535 zone.
PVA High Edge = 19734 PVA Low Edge = 19602 Prior POC = 19702
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