Markets
Volatility is the name of the game these days as investors try to size up the economic outlook and what it might mean for their portfolios. It hasn’t been easy forecasting where things might go from here, and a raft of mixed data points have led to difficult investing conundrums. As traders size up the latest sentiment, a broad-based rally took hold of equities on Monday, with the Dow Jones (DJI) popping 550 points, the benchmark S&P 500 (SP500) jumping 2.7% and the tech-heavy Nasdaq (COMP.IND) surging 3.4% into the close.
Economic Calendar
10:00 NAHB Housing Market Index
2:00 PM Fed’s Bostic Speech
4:00 PM Treasury International Capital
5:30 PM Fed’s Kashkari Speech
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Gap up opening set the “trading-tone” for the day as bulls extended the current rally swing higher. Two-way traffic during mid-session lead to a firm close at the bell. Range was 112 handles on 1.883M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently above Cycle Targets as price is extending the rally above PH (3702.50) and fulfilling 3763.75 TargetMaster-XZ Breakout Level 1. Bulls are in-control as the first sign of weakness would be reversing back below prior high (3702.50) As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 3725, initially targets 3760 – 3765 zone.
Bear Scenario: Price sustains offer below 3725, initially targets 3700 – 3690 zone.
PVA High Edge = 3698 PVA Low Edge = 3680 Prior POC = 3690
Range Projections and Key Levels (ES) December 2022 (Z) Contract
HOD ATR Range Projection: 3805; LOD ATR Range Projection: 3665; 3 Day Central Pivot: 3644; 3 Day Cycle Target: 3685; 10 Day Average True Range 106; VIX: 30
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is extending the current rally above PH (11146) and Cycle Target (11108). Today we look for continued strength to reach upper target objective 11470. First sign of weakness would be a reversal back below prior high. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 11240, THEN initial upside estimate targets 11360 – 11375 zone.
Bear Scenario: IF Bears sustains offer below 11240, THEN initial downside estimate targets 11170 – 11150 zone.
PVA High Edge = 11137 PVA Low Edge = 11039 Prior POC = 11104
Range Projections and Key Levels (NQ) December 2022 (Z) Contract
HOD ATR Range Projection: 11522; LOD ATR Range Projection: 11000; 3 Day Central Pivot: 109935; 3 Day Cycle Target: 11108; 10 Day Average True Range: 380; VIX: 30
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 SHOWN6.22.22