Markets
Nasdaq set to continue losing streak
The tech sector looks poised for another down day, fueled by fears about inflation and rising long-term interest rates. That could lower the present value of future earnings and undercut arguments for elevated valuations of high-growth tech stocks. The Nasdaq slumped 2.5% on Monday, while future contracts linked to the index fell another 1.5% overnight. In fact, the Nasdaq 100 has dropped 4.2% over the last five days, the longest consecutive streak of losses since Oct. 19.
Source: SeekingAlpha.com
Economic Calendar
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
10:00 PM Powell Testifies on Semi-Annual Monetary Policy Report
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 3 (CD3): Price failed to push higher, continuing its down slide. Recent bearish shift under the 3 Day Central Pivot Zone marked the beginning of this current decline. Range was 53 handles on 1.474M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Momentum has carried over overnight, pushing price lower fulfilling 3642 CD1 Violation Level. Price has since bounced back during pre-RTH to prior low (3861.25) As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3861, initially targets 3871 – 3877 zone.
2.) Price sustains an offer below 3861, initially targets 3845 – 3840 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3885 PVA Low Edge = 3872 Prior POC = 3875
Range Projections and Key Levels (ES) March 2021 (H) Contract
HOD ATR Range Projection: 3872; LOD ATR Range Projection: 3863; 3 Day Central Pivot: 3900; 10 Day Average True Range 33; VIX: 24
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price has continued its decline fulfilling CD1 Violation Low (12998) . Prior Range was 414 handles on 633k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13428 PVA Low Edge = 13288 Prior POC = 13338
Bull Scenario: IF Bulls sustain a bid above 13043, THEN initial upside estimate targets 13107 – 13175 zone.
Bear Scenario: IF Bears sustain an offer below 13043, THEN initial downside estimate targets 13998 – 13947 zone.
Range Projections and Key Levels (NQ) March 2021 (H) Contract
HOD ATR Range Projection: 13130; LOD ATR Range Projection: 13152; 3 Day Central Pivot: 13526; 10 Day Average True Range: 183; VIX: 24
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.”
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