Markets
Wall Avenue’s inventory sell-off intensified in a serious approach Monday as considerations mounted over the well being of the US financial system. The Dow Jones Industrial Common (^DJI) fell over 1,000 factors. The Nasdaq Composite (^IXIC) was crushed by greater than 3.4%. The S&P 500’s (^GSPC) losses cascaded practically 3% in its worst day since 2022, capping its worst begin to any month since 2002.
Wall Avenue’s “worry gauge” — the CBOE Volatility Index (^VIX) — touched its highest degree because the early days of the COVID-19 pandemic, earlier than retreating. Treasury yields fell, with the benchmark 10-year Treasury yield (^TNX) hovering close to 3.8%.
Supply: Yahoo Finance
Financial Calendar
S&P 500
Prior Session was Cycle Day 1: Right now’s session was a transparent “Ass-Whooping” (technical evaluation time period)…plain and easy. Value surpassed all CD1 “regular” ranges and established a brand new cycle low at 5120. This degree coincided with a buy response at the Weekly 50 ema, as well as Anchored VWAP as noted in X-Tweet. Range was 225 handles on 3.261M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Normally we would be anticipating MATD rhythms for this cycle day, and we still do, although the challenge is determining accurate parameters to outline potential edges. As such, we’ll defer to Mr. Market to be our guide for this session.
Note from Yours Truly:
As mentioned in the PTG Live Trading Room, Job #1 is to Manage $Risk…Job #2 >>> refer to Job #1. Keep in mind, nobody is “forcing” you to trade an environment that does not match your risk tolerance and trade strategy, particularly if they have not been “stress-tested” under the current conditions. IF this is the case for you, THEN best course of action is “in-action”…Sitting on Hands until conditions return back to some level of “normalization” that adheres to YOUR Trading Plan. BE SMART…Trading is a business and as such we are here to make a return on our investment monies and precious time. NOT being Bronco Cowboys!
Know Thy Plan! 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 5255, initially targets 5315 – 5330 zone.
Bear Scenario: Price sustains an offer below 5255, initially targets 5220 – 5200 zone.
PVA High Edge = 5252 PVA Low Edge = 5197 Prior POC = 5204
*****The 3 Day Cycle has a 90% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
ES Chart
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Today’s session was a clear “Ass-Whooping” (technical analysis term)…plain and simple. Price surpassed all CD1 “normal” levels and established a new cycle low at 17351. Range was 1039 handles on 917k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Normally we would be anticipating MATD rhythms for this cycle day, and we still do, although the challenge is determining accurate parameters to outline potential edges. As such, we’ll defer to Mr. Market to be our guide for this session.
Know Thy Plan! 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 18198, initially targets 18445 – 18555 zone.
Bear Scenario: Price sustains an offer below 18198, initially targets 18103 – 17994 zone.
PVA High Edge = 18198 PVA Low Edge = 17823 Prior POC = 18103
NQ Chart
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
