Trade Strategy 6.22.21

Markets

Awaiting Powell

Following a big day for U.S. equities on Monday, where the Dow took back its lead to close nearly 2% higher, stock index futures are debating their next direction. The wary atmosphere comes before Powell makes his next appearance, this time testifying in front of Congress at 2 p.m. ET. He’s set to reiterate job growth will pick up in the coming months and price pressures should ease, but may invite fresh talk about interest rate hikes or the Fed’s bond-buying program.

Source: SeekingAlpha.com

Economic Calendar

8:55 Redbook Chain Store Sales
10:00 Richmond Fed Mfg.
10:00 Existing Home Sales
1:00 PM Results of $60B, 2-Year Note Auction
1:00 PM Money Supply

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

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

S&P 500

Prior Session was Cycle Day 1 (CD1):  This cycle’s decline occurred on CD3, pushing price to deep lows. CD1 low (4126.75) was established early in the day. When this happens first, odds greatly favor a strong rally during RTH session, as it unfolded yesterday. Range was 93 handles on 1.382M contracts exchanged.

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Normal for CD2 is for some consolidation of recent gains, with an upside skew. 3 Day Cycle Objective has been fulfilled and exceeded. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4220, initially targets 4230 – 4235 zone.

2.) Price sustains an offer below 4220, initially targets 4205 – 4197 zone.

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

PVA High Edge = 4219       PVA Low Edge = 4175         Prior POC = 4213

Range Projections and Key Levels (ES) Sept 2021 (U) Contract

HOD  ATR Range Projection: 4240; LOD ATR Range Projection: 4192; 3 Day Central Pivot: 4190; 3 Day Cycle Target: 4184; 10 Day Average True Range  35; VIX: 17.50

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is extending cycle rally gains during overnight activity, fulfilling CD2 Penetration Level (14176). Prior range was 186 handles on 497k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 14138       PVA Low Edge = 13048      Prior POC = 14116

Bull Scenario: IF Bulls sustain a bid above 14144, THEN initial upside estimate targets 14157 – 14176 zone.

Bear Scenario: IF Bears sustain an offer below 14144, THEN initial downside estimate targets 14123 – 14116 zone.

Range Projections and Key Levels (NQ) Sept 2021 (U) Contract

HOD  ATR Range Projection: 14230; LOD ATR Range Projection: 14016; 3 Day Central Pivot: 14079; 3 Day Cycle Target: 14157; 10 Day Average True Range: 164; VIX: 17.50

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.

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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