Markets
Supply: In search of Alpha
Financial Calendar
S&P 500
Prior Session was Cycle Day 3: Optimistic 3 Day Cycle as value traded greater fulfilling 5360 – 5365 cycle goal zone as outlined in DTS Briefing 5.23.24. But the trade was not over with the satisfaction of upper targets. Price reversed and traded down to CD3 Violation Statistical Xtreme 5282 – 5277 zone. Just an absolute beautiful display of the 3 Day Cycle Levels. Range was 94 handles on 1.923M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Normal for Cycle Day 1 would be for a decline measuring 5302 which has been satisfied during prior long liquidation session. The Memorial Day weekend is on deck as traders will be heading out to the Hamptons and various other destinations by noon. So trading will become “thin-to-win during the afternoon session. 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 5275, initially targets 5300 – 5305 zone.
Bear Scenario: Price sustains an offer below 5275, initially targets 5255 – 5250 zone.
PVA High Edge = 5333 PVA Low Edge = 5274 Prior POC = 5284
*****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: Positive 3 Day Cycle as price traded higher fulfilling 19040 – 19024 CD3 Penetration Target Zone. But the trade was not over with the satisfaction of upper targets. Price reversed and traded down to 18626 Violation Target Level. Just an absolute beautiful display of the 3 Day Cycle Levels. Range was 401 handles on 840k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1: Normal for Cycle Day 1 would be for a decline measuring 18714 which has been satisfied during prior long liquidation session. The Memorial Day weekend is on deck as traders will be heading out to the Hamptons and various other destinations by noon. So trading will become “thin-to-win during the afternoon session. As always, our tactical trade plan remains unchanged…Stay in alignment with dominant intra-day forces.
Bull Scenario: Price sustains a bid above 18680, initially targets 18750 – 18790 zone.
Bear Scenario: Price sustains an offer below 18680, initially targets 18625 – 18570 zone.
PVA High Edge = 18897 PVA Low Edge = 18622 Prior POC = 18685
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.” –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
