Trade Strategy 1.6.21

Markets

Source: SeekingAlpha.com

Economic Calendar

9:45 PMI Composite Final
10:00 Factory Orders
2:00 PM FOMC Minutes

10:30 EIA Petroleum Inventories

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication

Tuesday’s Session was Cycle Day 2 (CD2): Price oscillated back n forth as expected for this day type. Once price tested the projected CD2 Deviation Low (3673.25) this cycle’s rally took firm hold, finishing the session with 3 Day Cycle Target (3718) being fulfilled. Market on Close Buy Imbalance of $3.6 Billion capped the session. Range was 56.75 handles on 1.355M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Residual bullish momentum is anticipated to continue into today’s session, as Bulls have regained control. Although cycle objectives have already been fulfilled, additional upside targets are achievable. There are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3730, initially targets 3753 – 3759 zone.

2.) Price sustains an offer below 3730, initially targets 3710 – 3700 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:

Link to access full Cycle Spreadsheet >> Cycle Day 3 (CD3)

PVA High Edge = 3715       PVA Low Edge = 3682         Prior POC = 3709

Range Projections and Key Levels (ES) March 2021 (H) Contract

HOD  ATR Range Projection: 3727; LOD ATR Range Projection: 3694; 3 Day Central Pivot: 3718; 3 Day Cycle Target: 3718; 10 Day Average True Range  41; VIX: 24.75

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price successfully tested the CD1 Low (12522.50) during overnight trade and has bounced back to PL (12612). 3 Day Cycle Statistic has been fulfilled, so we’ll mark today as a “wild-card”. Prior range was 197 handles on 478k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12775       PVA Low Edge = 12691      Prior POC = 12741

Bull Scenario: IF Bulls sustain a bid above 12612, THEN initial upside estimate targets 12660 – 12690 zone.

Bear Scenario: IF Bears sustain an offer below 12612, THEN initial downside estimate targets 12540 – 12510 zone.

Range Projections and Key Levels (NQ) March 2021 (H) Contract

HOD  ATR Range Projection: 12650; LOD ATR Range Projection: 12686; 3 Day Central Pivot: 12775; 3 Day Cycle Target: 12815; 10 Day Average True Range: 159; VIX: 24.75

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


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