Markets
More bullish economic data saw investors drive stocks higher in a broad advance on Monday. U.S. services industry activity jumped to a record high in an ISM survey following Friday’s bumper jobs report that showed U.S. nonfarm payrolls surging in March. Traders scooped up underperforming sectors like tech and communication services, and the only sector to finish in the red was energy, which was hit by a drop in oil prices.
Bigger picture: While the Dow and S&P continue to notch new records, the Nasdaq is still about 3% below its February high, as the recent spike in bond yields made growth stocks less attractive.
Source: SeekingAlpha.com
Economic Calendar
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Price continued its upward trek notching new all-time highs. Range was 52.75 handles on 1.205M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline with the average measuring 4016.50. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4060, initially targets 4072 – 4075 zone.
2.) Price sustains an offer below 4060, initially targets 4052 – 4045 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4073 PVA Low Edge = 4057 Prior POC = 4067
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4074; LOD ATR Range Projection: 4027; 3 Day Central Pivot: 4026; 10 Day Average True Range 46; VIX: 18
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is currently trading within prior value range, during Globex Session. Prior Range was 310 handles on 349k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12862 PVA Low Edge = 13471 Prior POC = 13580
Bull Scenario: IF Bulls sustain a bid above 13580, THEN initial upside estimate targets 13602 – 13622 zone.
Bear Scenario: IF Bears sustain an offer below 13580, THEN initial downside estimate targets 13530 – 13505 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13542; LOD ATR Range Projection: 13378; 3 Day Central Pivot: 13370; 10 Day Average True Range: 238; VIX: 18
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