S&P 500 (ES)
Prior Session was Cycle Day 3: Post Holiday Hang-Over struck hard for the morning session as traders decided to smash bids down to the 6375 level creating a solid opportunity for the BTFD crowd, namely Mutual Funds.
As the early afternoon session unfolded, buyers returned and jacked price higher into the closing bell with a $6 Billion Market on Close (MOC) Buy Imbalance related to the Mutual Funds putting new monies to work on the first trading session of the month.
Notable was price failing to reclaim the CD1 Low (6455.50) creating a “failed-cycle” which only occurs 9% historically. Though this could be related to the holiday, based on the late day rally, the failure could be negated with a reclaim of the 6455.50 level.
Range for this session was 110 handles on 1.615M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 9.2.25
FREE TRIAL link to PTG/Taylor Three Day Cycle
…Transition from Cycle Day 3 to Cycle Day 1
Transition into Cycle Day 1: Today begins a new cycle with the average decline projection (6434.75).
Note: This level was exceeded and reclaimed during the prior session. These rhythms are related to the holiday disruption and will eventually self-correct.
So for today’s trade, based on the late day rally, reclaiming the previous lost CD1 Low (6455.50) would be anticipated but not assured.
Normally we are looking for a decline on CD1 with lower levels of interest are: 6411.50…6390…6375.
Of course, nothing changes for PTG…Simply follow your plan. Take only Triple A setups and manage the $risk. ALWAYS HAVE HARD STOP-LOSSES in-place on the exchange.
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 6425+-, initially targets 6455 – 6465 zone.
Bear Scenario: Price sustains an offer below 6425+-, initially targets 6405– 6390 zone.
PVA High Edge = 6428 PVA Low Edge = 6390 Prior POC = 6425
ESU
Nasdaq (NQ)
Prior Session was Cycle Day 3: Post Holiday Hang-Over struck hard for the morning session as traders decided to smash bids down to the 23025 level creating a solid opportunity for the BTFD crowd, namely Mutual Funds.
As the early afternoon session unfolded, buyers returned and jacked price higher into the closing bell with a $6 Billion Market on Close (MOC) Buy Imbalance related to the Mutual Funds putting new monies to work on the first trading session of the month.
Range for this session was 484 handles on 649k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
Transition into Cycle Day 1: Late day rally may spill-over and extend higher before the normal CD1 rhythms self-correct from the holiday period.
Key Levels to be mindful of are:
23397.50 – Previous Week Low
23266.00 – Previous Full Session Midpoint
23157.75 – Regular Trading Hours Midpoint
Of course, nothing changes for PTG…Simply follow your plan. Take only Triple A setups and manage the $risk. ALWAYS HAVE HARD STOP-LOSSES in-place on the exchange.
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 23290+-, initially targets 23385– 23415 zone.
Bear Scenario: Price sustains an offer below 23290+-, initially targets 23210 – 23180 zone.
PVA High Edge = 23258 PVA Low Edge = 23073 Prior POC = 23233
NQU
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.”
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