Markets
A flurry of inflation jitters clobbered tech stocks on Monday as the Nasdaq dropped 2.4% for its worst day since March. The yield on the 10-year Treasury note also rose 3 bps to 1.6% – hitting growth names that depend on low rates to fuel their expansions – while the DJIA snapped a 5-session winning streak after pushing above the 35,000 milestone. Things don’t look better this morning, with Nasdaq futures off 1.4% and weighing on the broader market. Contracts linked to the Dow and S&P 500 are 0.6% and 0.9% lower, respectively, while most of Europe and Asia are also in the red.
Source: SeekingAlpha.com
Economic Calendar
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:30 Fed’s Williams Speech
12:00 PM Fed’s Brainard: Economic Outlook
1:00 PM Fed’s Daly Speech
1:15 PM Fed’s Bostic: Economic Outlook
2:00 PM Fed’s Harker: Economic Outlook
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Price oscillated throughout the morning session as CD1 downside targets were fulfilled during afternoon trading. Prior range was 66.25 handles on 1.627M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): More selling during overnight trade as price is trading near CD2 Violation Levels. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4150, initially targets 4160 – 4165 zone.
2.) Price sustains an offer below 4150, initially targets 4140 – 4135 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4238 PVA Low Edge = 4202 Prior POC = 4222
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4182; LOD ATR Range Projection: 4148; 3 Day Central Pivot: 4196; 3 Day Cycle Target: 4240; 10 Day Average True Range 38; VIX: 21.50
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price continues its downward slide fulfilling CD2 downside statistical violation zone. Prior Range was 446.50 handles on 591k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13686 PVA Low Edge = 13422 Prior POC = 13503
Bull Scenario: IF Bulls sustain a bid above 13190, THEN initial upside estimate targets 13235 – 13265 zone.
Bear Scenario: IF Bears sustain an offer below 13190, THEN initial downside estimate targets 13140 – 13086 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13357; LOD ATR Range Projection: 13127; 3 Day Central Pivot: 13646; 3 Day Cycle Target: 13565; 10 Day Average True Range: 217; VIX: 21.50
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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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