Trade Strategy 4.8.21

Markets

S&P 500 notched a fresh closing high of 4,079.95 on Wednesday. Stock index futures climbed further overnight, with contracts linked to the S&P 500 up another 0.4%, and the Dow and Nasdaq ahead by 0.2% and 0.8%, respectively.

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet

On tap: Fed Chair Jay Powell speaks at an IMF event later today, where he is likely to share his views on the global recovery and monetary policy outlook. Investors will also be tracking the latest Labor Department update on the number of Americans filing for unemployment benefits for the first time. Economists expect the downward trend to continue given the rehiring across the economy, with first-time claims totaling 680K during the week ended April 3.

11:00 Fed’s Bullard Speech
12:00 PM Jerome Powell Speech
2:00 PM Fed’s Kashkari Speech

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

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Normal CD2 as price consolidated throughout the session within 2-day value zone. Prior range was 19 handles on 1.070M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Markets move from price compression to price expansion. Prior few sessions experienced compression, so as previewed yesterday in Live Trading Room we posted:

PTGDavid :(3:52:34 PM) : Previewing tomorrow’s session for expansion
PTG: Phil :(3:52:50 PM) : hope so!
PTG: PTGDavid :(3:52:56 PM) : Not sure direction…but expansion…POLR >> UP

Cycle objectives have been fulfilled, so today’s expectation is to expand value with upside targeting 4094 handle. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4075, initially targets 4092 – 4094 zone.

2.) Price sustains an offer below 4075, initially targets 4063 – 4060 zone.

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

PVA High Edge = 4071       PVA Low Edge = 4063         Prior POC = 4068

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

HOD  ATR Range Projection: 4115; LOD ATR Range Projection: 4050; 3 Day Central Pivot: 4063; 3 Day Cycle Target: 4086; 10 Day Average True Range  42; VIX: 17

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has expanded above 2-day value zone fulfilling CD3 Penetration Objective (13728) during overnight trade. Prior range was 128.50 on 427k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 13615       PVA Low Edge = 13566      Prior POC = 13594

Bull Scenario: IF Bulls sustain a bid above 13640, THEN initial upside estimate targets 13728 – 13744 zone.

Bear Scenario: IF Bears sustain an offer below 13640, THEN initial downside estimate targets 13615 – 13594 zone.

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

HOD  ATR Range Projection: 13835; LOD ATR Range Projection: 13524; 3 Day Central Pivot: 13562; 3 Day Cycle Target: 13672; 10 Day Average True Range: 220; VIX: 17

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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