Markets
Supply: Looking for Alpha
Financial Calendar
S&P 500
Prior Session was Cycle Day 3: Value completed this cycle’s rally with a prolonged push to CD3 Penetration Ranges the place consumers ran out of gasoline. Majority of this session was aimless directional commerce with few good strong buying and selling alternatives. Mid afternoon sharp selloff discovered responsive consumers on the Line within the Sand (5125) and Volatility Trigger (VT) levels. Bullish reversal of the deep low closed price in more neutral zone. Range was 35 handles on 974k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures 5122 – 5120 zone (RECAP). Normal for Cycle Day 1 would be for a decline, although bulls still maintain overall dominance, so clearing and converting 5150 – 5155 zone opens the skylight to higher levels. BIG Event for this week is FOMC, so core anticipation is for rangebound rhythms ahead of the meeting/presser.
As always, our tactical trade plan remains unchanged…Stay in alignment with dominant intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5145, initially targets 5160 – 5165 zone.
Bear Scenario: Price sustains an offer below 5145, initially targets 5125 – 5120 zone.
PVA High Edge = 5150 PVA Low Edge = 5139 Prior POC = 5145
*****The 3 Day Cycle has a 90% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
Range Projections (ES) June 2024 (M)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3: Price finished this cycle’s rally with a extended push to CD3 Penetration Levels where buyers ran out of gas. Majority of this session was aimless directional trade with few good solid trading opportunities. Mid afternoon sharp selloff found responsive buyers at the Line in the Sand (17825). Bullish reversal of the deep low closed price in more neutral zone. Range was 158 handles on 525k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Average Decline for CD1 measures 17843 – 17832 zone (RECAP). Normal for Cycle Day 1 would be for a decline, although bulls still maintain overall dominance, so clearing and converting 17950 opens the skylight to higher levels. BIG Event for this week is FOMC, so core anticipation is for rangebound rhythms ahead of the meeting/presser.
As always, our tactical trade plan remains unchanged…Stay in alignment with dominant intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 17885, initially targets 17990 – 18012 zone.
Bear Scenario: Price sustains an offer below 17885, initially targets 17835 – 17825 zone.
PVA High Edge = 17922 PVA Low Edge = 17865 Prior POC = 17895
Range Projections (NQ) June 2024 (M)
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
