Markets
Source: SeekingAlpha.com
Economic Calendar
Get ready for a move above 7%. The latest CPI data is out today, with economists expecting the figure to have soared 7.3% in January, from a four-decade record notched in December. It’ll be another important gauge for the market as investors seek more information on pace and level of coming Fed rate hikes that are due to start in March. As of the last count, estimates on Wall Street ranged from three rate increases all the way to seven for 2022, with the federal funds rate projected to end the year anywhere from 1.25% to 2.00%.
8:30 Initial Jobless Claims
8:30 Consumer Price Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $23B, 30-Year Note Auction
2:00 PM Treasury Statement
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): Normal Cycle Day 2 unfolded for the RTH Session, as price gapped higher on the open, settling into a trading range throughout the day, closing near the highs. Range was 68 handles on 1.321M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Positive 3 Day Cycle objectives are in-place as traders await the all important CPI data. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4585, initially targets 4593 – 4596 zone.
2.) Price sustains an offer below 4563, initially targets 4553 – 4550 zone.
PVA High Edge = 4580 PVA Low Edge = 4563 Prior POC = 4577
Range Projections and Key Levels (ES) March 2022 (H) Contract
HOD ATR Range Projection: 4659; LOD ATR Range Projection: 4487; 3 Day Central Pivot: 4516; 3 Day Cycle Target: 4542; 10 Day Average True Range 96; VIX: 20.50
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently trading in the upper quartile of prior session, above value high (14992). Prior range was 327 handles on 524k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 15068, THEN initial upside estimate targets 15130 – 15157 zone.
Bear Scenario: IF Bears sustain an offer below 14992, THEN initial downside estimate targets 14966 – 14922 zone.
PVA High Edge = 14992 PVA Low Edge = 14868 Prior POC = 14922
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 15430; LOD ATR Range Projection: 14598; 3 Day Central Pivot: 14752; 3 Day Cycle Target: 14883; 10 Day Average True Range: 464; VIX: 20.50
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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