Trade Strategy 7.30.21

Markets

Closing out July

It’s the final trading day of the week (and month), but equities are not wearing their party hats. Nasdaq futures led the declines overnight, falling 1.2%.

Source: SeekingAlpha.com

Economic Calendar

8:30 Personal Income and Outlays
8:30 Employment Cost Index
9:00 Fed’s Bullard: U.S. Economy and Monetary Policy
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count

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

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Markets levitated again at all-time highs throughout the RTH session, consolidating between 4410 – 4420.Range was 42 handles on 984k contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Market is going to need another “magic-trick” to push again to ATH for the last trading day of week (month). Call in David Copperfield or Criss Angel. We need some good summer entertainment. Price has already declined 45 handles during overnight activity, the distance of CD3 average range. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4380, initially targets 4400 – 4405 zone. 

2.) Price sustains an offer below 4380, initially targets 4365 – 4360 zone.

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

PVA High Edge = 4421       PVA Low Edge = 4309         Prior POC = 4412

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

HOD  ATR Range Projection: 4409; LOD ATR Range Projection: 4350; 3 Day Central Pivot: 4393; 3 Day Cycle Target: 4412; 10 Day Average True Range  38; VIX: 19

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Nasdaq futures led the declines overnight, falling 1.2% after Q2 revenues at Amazon (AMZN) fell short of expectations. Prior range was 179 handles on 410k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 15080       PVA Low Edge = 15028      Prior POC = 15065

Bull Scenario: IF Bulls sustain a bid above 14905, THEN initial upside estimate targets 15940 – 15960 zone.

Bear Scenario: IF Bears sustain an offer below 14905, THEN initial downside estimate targets 14862 – 14835 zone.

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

HOD  ATR Range Projection: 14984; LOD ATR Range Projection: 14765; 3 Day Central Pivot: 14958; 3 Day Cycle Target: 14967; 10 Day Average True Range: 172; VIX: 19

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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