S&P 500
Prior Session was Cycle Day 3: Three-Day Cycle Statistic (90%) was satisfied as price traded above the Cycle Day 1 Low (5516.75) as well as fulfilling the primary Cycle Target Zone (5555 – 5560) outlined in prior DTS Briefing 9.5.24. Range was 67 handles on 1.670M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures (5483). Market Structure continues to weaken as long as price remains below a descending 3 Day Central Pivot Zone.
BIG Event for today is the Non-Farm Payroll (Jobs) Report. Bears have ball control as lowering Value Area continues to favor selling the bounces. Bulls must reclaim the lost 5525 – 5530 zone at minimum followed by 5545 – 5550 next zone above. Bears have the advantage below 5505 5495 zone. Loss of this zone opens trap door for continued liquidation. RISK-OFF is the current sentiment. As always, we’ll let Mr. Market be our “tour-guide.”
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 5525 – 5530 zone.
Bear Scenario: Price sustains an offer below 5505, initially targets 5483 – 5472 zone.
PVA High Edge = 5638 PVA Low Edge = 5504 Prior POC = 5524
ES Chart
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: Three-Day Cycle Statistic (90%) was satisfied as price traded above the Cycle Day 1 Low (18911) and fulfilled the primary Target Zone (19115 – 19165) outlined in prior DTS Briefing 9.5.24. Range was 323 handles on 577k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures (18759). Market Structure continues to weaken as long as price remains below a descending 3 Day Central Pivot Zone.
BIG Event for today is the Non-Farm Payroll (Jobs) Report. Bears have ball control as Lowering Value Area continues to favor selling the bounces. Bulls must reclaim the lost 19000 – 19055 zone at minimum. Bears have the advantage below 18910 – 18885 zone. Loss of this zone opens trap door for continued liquidation. RISK-OFF is the current sentiment. As always, we’ll let Mr. Market be our “tour-guide.”
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 18910, initially targets 19005 – 19055 zone.
Bear Scenario: Price sustains an offer below 18910, initially targets 18783 – 18759 zone.
PVA High Edge = 19005 PVA Low Edge = 18885 Prior POC = 18937
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.
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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