Trade Strategy 7.23.21

Posted on by July 23, 2021

Markets

Rally goes on
 
A three-day winning streak on Wall Street – that followed a sharp selloff on Monday – is showing no signs of slowing down as futures continued to climb in overnight trading. At the time of writing, contracts linked to the Dow and S&P 500 were up 0.5%, while the Nasdaq tacked on a gain of 0.6%.

Source: SeekingAlpha.com

Economic Calendar

9:45 PMI Composite Flash
1:00 PM Baker-Hughes Rig Count

\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 continued it’s “power rally” this cycle consolidating throughout the session and a final push higher into the closing bell. Range was 30 handles on 962k contracts exchanged.

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4343. Price is extending gains to the CD1 Penetration Level (4383) during overnight activity. Volatility Index (VIX) which had spiked to 21.50 is back down to 17 historical norm level. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4372, initially targets 4383 – 4388 zone. 

2.) Price sustains an offer below 4372, initially targets 4364 – 4354 zone.

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

PVA High Edge = 4358       PVA Low Edge = 4346         Prior POC = 4353

Range Projections and Key Levels (ES) Sept 2021 (U) Contract

HOD  ATR Range Projection: 4412; LOD ATR Range Projection: 4338; 3 Day Central Pivot: 4334; 3 Day Cycle Target: 4402; 10 Day Average True Range  44; VIX: 17

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is pushing up against previous ATH during pre-RTH trade activity.  Average Decline for CD1 measures 14902. Prior range was 156 handles on 417k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 14923       PVA Low Edge = 14870      Prior POC = 14916

Bull Scenario: IF Bulls sustain a bid above 14982, THEN initial upside estimate targets 15012 – 15032 zone.

Bear Scenario: IF Bears sustain an offer below 14982, THEN initial downside estimate targets 14950 – 14930 zone.

Range Projections and Key Levels (NQ) Sept 2021 (U) Contract

HOD  ATR Range Projection: 15132; LOD ATR Range Projection: 14848; 3 Day Central Pivot: 14795; 3 Day Cycle Target: 15230; 10 Day Average True Range: 168; VIX: 17

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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