Trade Strategy 3.24.21

Markets

Asian markets tumbled again overnight, while stocks in Europe dipped into the red, though things are looking more positive in the U.S. after a late selloff on Tuesday. Nasdaq futures are up by 1%, while contacts linked to the S&P 500 and Dow are ahead by 0.4%, as the latest bull market officially enters its second year.

Source: SeekingAlpha.com

Economic Calendar

8:30 Durable Goods
9:45 PMI Composite Flash
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

8:50 Fed’s Barkin Speech
10:00 Powell’s Testimony on Coronavirus Aid, Relief, and Economic Security Act
1:35 PM Fed’s Williams Speech
3:00 PM Fed’s Daly Speech
7:00 PM Fed’s Evans Speech

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 3 (CD3): Price fulfilled Cycle Objectives but failed to sustain bid above prior high, then this Cycle’s decline began. Three-Fourths of the average decline is in-place (3882), so additional selling may spillover into CD1’s session. Range was 48 handles on 1.611M contracts exchanged.

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Having fulfilled three-fourths of this cycle’s average decline (3882), further weakness can be anticipated to flush out the final sellers before this cycle’s rally begins. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3900, initially targets 3918 – 3923 zone.

2.) Price sustains an offer below 3900, initially targets 3880 – 3875 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 3 (CD3)

PVA High Edge = 3938       PVA Low Edge = 3914         Prior POC = 3923

Range Projections and Key Levels (ES) June 2021 (M) Contract

HOD  ATR Range Projection: 3938; LOD ATR Range Projection: 3873; 3 Day Central Pivot: 3910; 3 Day Cycle Target: 3965; 10 Day Average True Range  46; VIX: 20

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price is currently trading within 2-day Value Zone. Prior range was 193 handles on 596k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 13130       PVA Low Edge = 13044      Prior POC = 13088

Bull Scenario: IF Bulls sustain a bid above 13100, THEN initial upside estimate targets 13150 – 13175 zone.

Bear Scenario: IF Bears sustain an offer below 13100, THEN initial downside estimate targets 13050 – 13000 zone.

Range Projections and Key Levels (NQ) June 2021 (M) Contract

HOD  ATR Range Projection: 13297; LOD ATR Range Projection: 12864; 3 Day Central Pivot: 12960; 3 Day Cycle Target: 13366; 10 Day Average True Range: 282; VIX: 20

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


Leave a Reply