Trade Strategy 6.2.21

Markets

Looking for direction

U.S. stock futures were muted again overnight following a flat session for Wall Street on Tuesday. The “sit tight” mentality is being reflected in the broader market as traders continue to ponder inflation risks, rebounding consumer demand, supply bottlenecks and red-hot manufacturing. Some other catalysts might be seen in the coming sessions, when the Labor Department releases its jobs report on Friday, before a high-profile FOMC meeting set for in mid-June.

Source: SeekingAlpha.com

Economic Calendar

8:15 ADP Jobs Report
8:55 Redbook Chain Store Sales

12:00 PM Fed’s Evans: U.S. Monetary Policy
12:00 PM 
Fed’s Harker: “Entrepreneurship and Minority-Owned Business”
12:00 PM 
Fed’s Harker: U.S. Economic Outlook
2:00 PM 
Fed’s Beige Book

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 2 (CD2): Following post-holiday ramp-up during GLOBEX fulfilling 3 Day Cycle Target (4224), a normal CD2 unfolded during RTH Session, as price consolidated throughout the day. Prior range was 33.75 handles on 1.224M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Official start of summer-trading has begun, with traders/investors awaiting Friday’s Jobs Report for the next potential catalyst. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4210, initially targets 4220 – 4225 zone.

2.) Price sustains an offer below 4190, initially targets 4180 – 4175 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 4210       PVA Low Edge = 4196         Prior POC = 4205

Range Projections and Key Levels (ES) June 2021 (M) Contract

HOD  ATR Range Projection: 4226; LOD ATR Range Projection: 4168; 3 Day Central Pivot: 4204; 3 Day Cycle Target: 4224; 10 Day Average True Range  35; VIX: 18

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price is currently trading within prior value area following a wide range day post-holiday in which 3 Day Cycle Target (13751) was fulfilled. Prior range was 181 handles on 395k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 13709       PVA Low Edge = 13627      Prior POC = 13650

Bull Scenario: IF Bulls sustain a bid above 13650, THEN initial upside estimate targets 13700 – 13720 zone.

Bear Scenario: IF Bears sustain an offer below 13650, THEN initial downside estimate targets 13590 – 13550 zone.

Range Projections and Key Levels (NQ) June 2021 (M) Contract

HOD  ATR Range Projection: 13779; LOD ATR Range Projection: 13500; 3 Day Central Pivot: 13684; 3 Day Cycle Target: 13751; 10 Day Average True Range: 162; 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.

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 SHOWN


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