Trade Strategy 9.25.23

Markets (Top Stories)

Deadlock continues

The budgetary standoff in the U.S. doesn’t look like it will abate soon, raising the likelihood of the first government shutdown since 2019, as hardline Republicans continue to hold off on agreeing to a stopgap spending bill. Current funding for federal operations will end on October 1. If Congress fails to reach a spending deal by then, thousands of federal workers will be furloughed without pay.

Source: SeekingAlpha.com

Economic Calendar

8:30 Chicago Fed National Activity Index
10:30 Dallas Fed Manufacturing Survey

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

S&P 500

Prior Session was Cycle Day 3 (CD3):  Failed Three-Day Cycle as price could not recover previous CD1 Low 4443, as selling momentum and “risk-off” mind-set was to overwhelming for bulls to overcome. Prior range was 41 handles on 1.650M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 4364 which has already been exceeded as price is currently trading below Prior Low (4357) pre RTH. Bulls will need to form a greater defense to stem any further slide. August low has been violated and next BIG test is the 50 Week (yes week) average at 4346 handle. As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4355, initially targets 4375 – 4380 zone. 

Bear Scenario: Price sustains an offer below 4355, initially targets 4345 – 4340 zone.

PVA High Edge = 4394       PVA Low Edge = 4372        Prior POC = 4380

Range Projections and Key Levels (ES) December 2023 (Z) Contract

HOD  ATR Range Projection: 4395; LOD ATR Range Projection: 4331; 3 Day Central Pivot: 4410; 3 Day Cycle Target: 4388; 10 Day Average True Range  48; VIX: 18

Nasdaq 100 (NQ)

Prior Session was Cycle Day 3 (CD3):  Failed Three-Day Cycle as price could not recover previous CD1 Low 15127, as selling momentum and “risk-off” mind-set was to overwhelming for bulls to overcome. Prior range was 191 handles on 617k contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline measures 14915 which has already been exceeded as price is currently trading at CD1 range low at 14821 handle. Bulls will need to form a greater defense to stem any further slide. As such, scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 14855, initially targets 14940 – 14945 zone. 

Bear Scenario: Price sustains an offer below 14855, initially targets 14825 – 14800 zone.

PVA High Edge = 14936       PVA Low Edge = 14865     Prior POC = 14921

Range Projections and Key Levels (NQ) December 2023 (Z) Contract

HOD  ATR Range Projection: 15026; LOD ATR Range Projection: 14716; 3 Day Central Pivot: 15030; 3 Day Cycle Target: 15087; 10 Day Average True Range: 230; VIX: 18

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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