Another day of losses may be in store for the U.S. stock market, with futures contracts tied to the Dow, S&P 500 and Nasdaq falling another 0.3% overnight. The major averages have slid over the last three consecutive trading days as investors question valuations amid worries about Fed tapering and the Delta variant. Recovery optimism was also thrown a curveball last Friday, with a jobs report that showed a sharp slowdown in the pace of hiring in the U.S
1:05 Fed’s Evans: “Exploring Career Pathways in Economic and Related Fields”
11:05 Fed’s Daly: “The Economic Gains From Equity”
12:00 Fed’s Kaplan: “Next Phase: The Economic Outlook”
1:00 PM Fed’s Bowman: “Community Bank Access to Innovation”
2:00 PM Fed’s Williams: “Racism and the Economy: Focus on Health”
4:00 PM Fed’s Rosengren, Fed’s Kashkari and Fed’s Kaplan participates in President Panel
4:25 PM Fed’s Rosengren: “Racism and the Economy: Focus on Health”
***New: PTG Trading Room Chat Log’s Link
Prior session was Cycle Day 1 (CD1): Textbook CD1 unfolded, as price continued its declined which began on CD3. Range was 32.75 handles on 1.455M 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 ‘back n fill’ price to absorb recent activity. Overnight CD1 Low (4492) held test and has stabilized near 4500. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4500, initially targets 4515 – 4522 zone.
2.) Price sustains an offer below 4500, initially targets 4482 – 4475 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4416 PVA Low Edge = 4502 Prior POC = 4501
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading back within prior value during overnight activity following yesterday’s wide range decline. Prior range was 167 handles on 550k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 15634 PVA Low Edge = 15560 Prior POC = 15606
Bull Scenario: IF Bulls sustain a bid above 15585, THEN initial upside estimate targets 15606 – 15623 zone.
Bear Scenario: IF Bears sustain an offer below 15585, THEN initial downside estimate targets 15543 – 15524 zone.
Range Projections and Key Levels (NQ) Sept 2021 (U) Contract
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!
“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
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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