Markets
Earnings season kicks into high gear
Traders are preparing for the busiest week of earnings season, which will include reports from some of the largest tech companies, and the excitement is palpable. Nasdaq futures climbed 1% to lead gains overnight, while the S&P 500 and Dow Jones rose 0.4% and 0.1%, respectively.
Source: SeekingAlpha.com
Economic Calendar
8:30 Chicago Fed National Activity Index
10:30 Dallas Fed Manufacturing Survey
1:00 PM Results of $60B, 2-Year Note Auction
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 3 (CD3): Price held bid throughout this session as Cycle Statistic was fulfilled. Range was 35.75 handles on 1.072M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline with average measuring 3802.50. Price has declined during overnight trade to the 3 Day Central Pivot Zone (3833 – 3838). There are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3835, initially targets 3850 – 3853 zone.
2.) Price sustains an offer below 3835, initially targets 3820 – 3815 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3843 PVA Low Edge = 3828 Prior POC = 3793
Range Projections and Key Levels (ES) March 2021 (H) Contract
HOD ATR Range Projection: 3848; LOD ATR Range Projection: 3821; 3 Day Central Pivot: 3835; 3 Day Cycle Target: 3875; 10 Day Average True Range 32; VIX: 23
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is pushing higher during overnight trade achieving CD1 Penetration Level (13497). Prior Range was 102 handles on 392k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13383 PVA Low Edge = 12342 Prior POC = 13375
Bull Scenario: IF Bulls sustain a bid above 13400, THEN initial upside estimate targets 13380 – 13498 zone.
Bear Scenario: IF Bears sustain an offer below 13400, THEN initial downside estimate targets 13375 – 13342 zone.
Range Projections and Key Levels (NQ) March 2021 (H) Contract
HOD ATR Range Projection: 13534; LOD ATR Range Projection: 13343; 3 Day Central Pivot: 13310; 3 Day Cycle Target: 13497; 10 Day Average True Range: 165; VIX: 23
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