Markets (Top Stories)
Another wild weekend has seen regulators attempt to stave off a banking crisis that’s quickly spreading across global markets. In an emergency deal brokered by Swiss authorities, UBS (NYSE:UBS) agreed to scoop up longtime rival Credit Suisse (NYSE:CS) for $3.25B, which was less than half of the latter’s market valuation at the close of trading on Friday. Without a deal, Credit Suisse would’ve likely collapsed this week, spreading further financial contagion that began in the U.S. with the implosion of Silvergate Capital (SI), Silicon Valley Bank (SIVB) and Signature Bank (SBNY) (First Republic (FRC) is also facing trouble with additional cuts to its ratings).
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 3932.50. Triple Options Expiration definitely influenced price action as expected. Prior range was 76 handles on 2.081M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is back n fill consolidation to work off recent activity. More Banking Sector fallout out. (see above) Overnight/pre-RTH has price swinging within a wide 81 handle range, so stay focused and flexible. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3950, initially targets 3970 – 3975 zone.
Bear Scenario: Price sustains an offer below 3950, initially targets 3905 – 3900 zone.
PVA High Edge = 3969 PVA Low Edge = 3936 Prior POC 3948
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 3983; LOD ATR Range Projection: 3892; 3 Day Central Pivot: 3948; 3 Day Cycle Target: 3969; 10 Day Average True Range 86; VIX: 26
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 12569.50. Triple Options Expiration definitely influenced price action as expected. Prior range was 241 handles on 712k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is back n fill consolidation to work off recent activity. More Banking Sector fallout out. (see above) Overnight/pre-RTH has price swinging within a wide 225 handle range, so stay focused and flexible. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12650, THEN initial upside estimate targets 12740– 12750 zone.
Bear Scenario: IF Bears sustains offer below 12650, THEN initial downside estimate targets 12530 – 12525 zone.
PVA High Edge = 12710 PVA Low Edge = 12603 Prior POC = 12643
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 12826; LOD ATR Range Projection: 12448; 3 Day Central Pivot: 12521; 3 Day Cycle Target: 12800; 10 Day Average True Range: 301; 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.”
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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