Markets
U.S. stock futures slid another 1% overnight on the news, after the major averages closed 1% lower on Wednesday. Things don’t look better in Europe, where the Euro Stoxx 50 fell over 2%, or in Asia, where the Hang Seng closed down by the same amount.
Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
10:00 E-Commerce Retail Sales
10:00 Leading Indicators
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior session was Cycle Day 1 (CD1): Market broke hard to the downside following release of FED Minutes, fulfilling CD1 Violation Target 4397. Range was 68.25 handles on 1.505M contracts exchanged. Market on Close Sell $3.8 Billion capped the session. VIX has spiked to 24.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price weakness continues during overnight activity surpassing CD2 Violation Low Extreme (4357). Markets will be searching for stabilization today. Will the BTFD Crowd come to the rescue? As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4362, initially targets 4382 – 4390 zone.
2.) Price sustains an offer below 4362, initially targets 4352 – 4342 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4448 PVA Low Edge = 4426 Prior POC = 4437
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
HOD ATR Range Projection: 4375; LOD ATR Range Projection: 4364; 3 Day Central Pivot: 4436; 3 Day Cycle Target: 4412; 10 Day Average True Range 28; VIX: 24
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Nasdaq Futures have been the weakest link for days leading up to prior session’s sell-off. Price has fulfilled downside CD2 Violation Extreme Zone (14765 – 14738). Prior range was 230 handles on 562k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 15022 PVA Low Edge = 14969 Prior POC = 14983
Bull Scenario: IF Bulls sustain a bid above 14750, THEN initial upside estimate targets 14790 – 14805 zone.
Bear Scenario: IF Bears sustain an offer below 14750, THEN initial downside estimate targets 14700 – 14698 zone.
Range Projections and Key Levels (NQ) Sept 2021 (U) Contract
HOD ATR Range Projection: 14860; LOD ATR Range Projection: 14725; 3 Day Central Pivot: 14985; 3 Day Cycle Target: 14892; 10 Day Average True Range: 149; 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.”
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