Markets
The new week is starting with some familiar investing trends as cyclicals look poised to notch modest gains this morning with tech on the back foot. Dow futures are ahead by 0.3%, while contracts linked to the Nasdaq are off by 0.3% and the S&P 500 is hugging the flatline.
Source: SeekingAlpha.com
Economic Calendar
12:30 PM Investor Movement Index
https://www.investing.com/economic-calendar/
The U.S. government has declared a state of emergency to keep fuel supply lines open following the shutdown of Colonial Pipeline on Friday.
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S&P 500
Friday’s Session was Cycle Day 3 (CD3): Price closed out the week with another all-time high following a dismal Jobs Report. Most of the gains were in-place by noon as the afternoon session traded sideways. Range was 40.50 handles on 1.544M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is holding recent gains during overnight trade. Average CD1 Decline (4204) is the downside objective, should price action turn south. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4232, initially targets 4243 – 4246 zone.
2.) Price sustains an offer below 4232, initially targets 4209 – 4204 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4231 PVA Low Edge = 4213 Prior POC = 4227
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4257; LOD ATR Range Projection: 4204; 3 Day Central Pivot: 4186; 3 Day Cycle Target: 4256; 10 Day Average True Range 34.50; VIX: 17
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…CD1 decline objective measures 13511.50. Prior range was 230 handles on 530k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13778 PVA Low Edge = 13680 Prior POC = 13728
Bull Scenario: IF Bulls sustain a bid above 13675, THEN initial upside estimate targets 13725 – 13730 zone.
Bear Scenario: IF Bears sustain an offer below 13675, THEN initial downside estimate targets 13640 – 13620 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13830; LOD ATR Range Projection: 13558; 3 Day Central Pivot: 13960; 3 Day Cycle Target: 13592; 10 Day Average True Range: 194; 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.”
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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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