Markets
Futures advance after tech rout
Paring some earlier losses, U.S. equity futures are now up by 0.5% following yesterday’s slide into correction territory for the Nasdaq Composite.
Fed Chair Jerome Powell will have a chance to share his latest thoughts this morning when he delivers the opening remarks to the “Conference on Monetary Policy Strategy, Tools And Communication Practices.”
In Asia, Japan flat. Hong Kong -0.5%. China -1%. India -0.5%.
In Europe, at midday, London +0.9%. Paris +0.2%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.5%. S&P +0.5%. Nasdaq +0.5%. Crude -0.8% to $52.84. Gold +0.2%to $1331. Bitcoin -6.9% to $7928.
Ten-year Treasury Yield +2 bps to 2.1%
(Source: Seeking Alpha)
Economic Calendar
8:30Fed’s Williams: “Building Cultural Capital in the Financial Services Industry: Emerging Practices, Risks and Opportunities”
8:55Redbook Chain Store Sales
9:45Fed’s Evans: “Monetary Policy Strategy, Tools and Communications Practices”
9:55Jerome Powell: “Monetary Policy Strategy, Tools and Communications Practices”
10:00Factory Orders
3:45 PMFed’s Reserve Gov. Lael Brainard” “What Does Full Employment Look Like for Your Community or Constituency?”
6:45 PMFed’s Kaplan: “Monetary Policy Strategy, Tools and Communications Practices”
*****New PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 3 …Price has struggled for the 2nd straight Cycle, but has managed to trade above Cycle Day 1 Low (2750), fulfilling Positive 3 Day Rally Statistic. Next significant hurdle for bulls is to convert the 3 Day Central Pivot Zone from resistance to support.
“You can do it ‘Oh Baby’ if you try”…Simple Man…Lynyrd Skynyrd
CD3 Range High = 2767.50 CD3 Range Low = 2731.25 CD3 Range Avg = 33.25
Scenario 1: IF Bulls hold bid above 2753, THEN initial upside targets 2763 – 2768 zone.
Scenario 2: IF Bears hold offer below 2753, THEN initial downside targets 2743 – 2738 zone.
Range Projections and Key Levels (ES) June (M) Contract
HOD ATR Range Projection: 2776.50; LOD ATR Range Projection: 2732.00; Cycle Day 1 Low: 2750.00; 3 Day Central Pivot: 2767.00; 3 Day Cycle Target: 2778.00; 10 Day Average True Range 32.37; VIX: 18.46
Nasdaq 100 (NQ)
Today is Cycle Day 3…Price has struggled this cycle and currently still below Cycle Day 1 Low (7129.25). Historical Odds favor recovery back to and/or above this level to fulfill Positive 3 Day Cycle Statistic. This could be a tall-task for the bulls this cycle with recent Big Tech weakness. Stay Tuned!
CD3 Range High = 7084.50 CD3 Range Low = 6991.50 CD3 Range Avg = 102.75
Scenario 1: IF Bulls hold bid above 7000, THEN initial upside potential targets 7040 – 7060 zone.
Scenario 2: IF Bears hold offer below 7000, THEN initial downside targets 6965 – 6945 zone.
Range Projections and Key Levels (NQ) June (M) Contract
HOD ATR Range Projection: 7096.50; LOD ATR Range Projection: 6934.00; Cycle Day 1 Low: 7129.25; 3 Day Central Pivot: 7148.75; 3 Day Cycle Target: 7198.00; 10 Day Average True Range: 114.78; VIX: 18.46
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