Markets
Powell returns to Capitol Hill
Reassuring comments from Jerome Powell helped stocks recover on Tuesday following steep losses earlier in the day. The Nasdaq ended the session down 0.5%, after falling as much as 4%, while the Dow staged a massive 360-point comeback and closed nearly 16 points higher.
Source: SeekingAlpha.com
Economic Calendar
10:00 New Home Sales
10:00 State Street Investor Confidence Index
11:00 Survey of Business Uncertainty
11:30 Results of $26B, 2-Year FRN Auction
1:00 PM Results of $61B, 5-Year Note Auction
10:00 Powell Testifies Before House Financial Services Committee
10:30 Fed’s Brainard: “The Federal Reserve’s Maximum Employment Mandate”
12:00 PM Fed’s Clarida: U.S. Economic Outlook and Monetary Policy
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
10:30 EIA Petroleum Inventories
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 1 (CD1): Normal CD1 unfolded as price continued its decline reaching Statistical CD1 Violation Extreme during GLOBEX Session. Price again pushed aggressively lower during the Opening Range, finding a secure low at 3804.75. The remainder of the session, price swung between Value Area High and Low of 40 handles. Late day rally drove shorts to cover closing the opening gap. Range was 91.25 handles on heavy 2.225M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Cycle Rally Objective (3868) has been fulfilled during prior session. Expectation for today’s session is for continued elevated volatility as price searches for balance acceptance. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3865, initially targets 3880 – 3885 zone.
2.) Price sustains an offer below 3865, initially targets 3850 – 3845 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle 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 2 (CD2)
PVA High Edge = 3865 PVA Low Edge = 3827 Prior POC = 3844
Range Projections and Key Levels (ES) March 2021 (H) Contract
HOD ATR Range Projection: 3892; LOD ATR Range Projection: 3855; 3 Day Central Pivot: 3885; 3 Day Cycle Target: 3868; 10 Day Average True Range 40; VIX: 23
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading above prior range and has exceeded this Cycle’s Objective (13043). Prior range was 579 handles on 849k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13115 PVA Low Edge = 12868 Prior POC = 13000
Bull Scenario: IF Bulls sustain a bid above 13180, THEN initial upside estimate targets 13295 – 13330 zone.
Bear Scenario: IF Bears sustain an offer below 13180, THEN initial downside estimate targets 13120 – 13100 zone.
Range Projections and Key Levels (NQ) March 2021 (H) Contract
HOD ATR Range Projection: 13251; LOD ATR Range Projection: 13040; 3 Day Central Pivot: 13350; 3 Day Cycle Target: 13043; 10 Day Average True Range: 224; VIX: 23
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.
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