Markets
The Federal Reserve is waking up this morning a little bruised around the face as a black eye inflation report underscored the now-infamous “transitory” forecast from Jay Powell and Co. The Consumer Price Index surged by an annual 9.1% in June, marking the fastest pace in four decades and risking more entrenched expectations.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 3 (CD3): Three-Day Cycle Objectives were fulfilled during yesterday’s GLOBEX Session but failed the RTH Session on increased selling volumes. Range was 121 handles on 2.009M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 3729 which has already been fulfilled. Volatility ranges are expected to remain historically elevated. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3750, initially targets 3770 – 3775 zone.
Bear Scenario: Price sustains an offer below 3750, initially targets 3735 – 3725 zone.
PVA High Edge = 3832 PVA Low Edge = 3790 Prior POC = 3808
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 3954; LOD ATR Range Projection: 3835; 3 Day Central Pivot: 3837; 3 Day Cycle Target: 3850; 10 Day Average True Range 79; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Today is CD1 with Average Decline measuring 11528. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 11665, THEN initial upside estimate targets 11705 – 11750 zone.
Bear Scenario: IF Bears sustains offer below 11665, THEN initial downside estimate targets 11625 – 11600 zone.
PVA High Edge = 11850 PVA Low Edge = 11665 Prior POC = 11807
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 12285; LOD ATR Range Projection: 11877; 3 Day Central Pivot: 11945; 3 Day Cycle Target: 11853; 10 Day Average True Range: 316; VIX: 26
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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