Markets (Top Stories)
The strength of the labor market has, for the most part, been surprising to the upside since the economy rebounded from the pandemic shock in March-April 2020. While that may be good news for workers, it’s not what the Federal Reserve wants. Chair Jerome Powell has emphasized that the labor market remains unsustainably tight, and supply and demand need to get into better balance for inflation to retreat toward the Fed’s 2% goal.
Source: seekingalpha.com
Economic Calendar
8:30 Non-farm payrolls
1:00 PM Baker Hughes Rig Count
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Positive 3-Day Cycle Statistic was fulfilled as price held lower support (80 -75), then converted Line-in-Sand (4200), sparking a rally which propelled price higher fulfilling upper target zone (35 – 40). Prior range was 62 handles on 1.796M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4205 handle. Bullish momentum is in-place, as price is pushing higher in overnight trade activity. Further upside targets range between 4255 – 4270 zone. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4240, initially targets 4255 – 4270 zone.
Bear Scenario: Price sustains an offer below 4240, initially targets 4230 – 4225 zone.
PVA High Edge = 4239 PVA Low Edge = 4195 Prior POC 4227
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4281; LOD ATR Range Projection: 4200; 3 Day Central Pivot: 4209; 3 Day Cycle Target: 4299; 10 Day Average True Range 52; VIX: 15
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Positive 3-Day Cycle Statistic was fulfilled as price held lower support (14260), then converted (14340), sparking a rally which propelled price higher fulfilling upper target zone (14500 – 14520). Prior range was 280 handles on 610k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 14418 handle. Bullish momentum is in-place, as price is pushing higher in overnight trade activity. Further upside targets range between 14545 – 14565 zone. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14530, initially targets 14565 – 14595 zone.
Bear Scenario: Price sustains an offer below 14530, initially targets 14475 – 14465 zone.
PVA High Edge = 14455 PVA Low Edge = 14252 Prior POC = 14297
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 14738; LOD ATR Range Projection: 14300; 3 Day Central Pivot: 14395; 3 Day Cycle Target: 14752; 10 Day Average True Range: 265; VIX: 15
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