Trade Strategy 1.28.21

Markets

Wall Street on Wednesday logged its worst day since October despite many catalysts that could have been utilized by traders. On the surface level, things appeared to be positive for equities, like the unwavering support of the Federal Reserve. While the central bank flagged a moderating recovery, Chairman Jay Powell made clear the U.S. central bank was nowhere near exiting massive support for the economy, left benchmark interest rates near zero and repeated a pledge to maintain its bond buying program at the current pace of $120B of purchases per month. U.S. stock index futures still fell again overnight: Dow -0.4%; S&P 500 -0.7%; Nasdaq -1%.

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
8:30 International Trade in Goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 GDP Q1
10:00 New Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $62B, 7-Year Note Auction
4:30 PM Money Supply
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): Price failed to expand above CD2 hIgh…As such the decline began and accelerated throughout the session, exceeding all downside targets. Range was 146.50 handles on 2.503M contracts exchanged.

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Price is in new territory, so today is anticipated to be a wide range day with volatility elevated in search of new accepted balance. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3750, initially targets 3773 – 3783 zone.

2.) Price sustains an offer below 3750, initially targets 3730 – 3720 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3806       PVA Low Edge = 3748         Prior POC = 3793

Range Projections and Key Levels (ES) March 2021 (H) Contract

HOD  ATR Range Projection: 3745; LOD ATR Range Projection: 3707; 3 Day Central Pivot: 3812; 3 Day Cycle Target: 3809; 10 Day Average True Range  42; VIX: 32

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price is balancing during overnight trade, following sharp decline in prior session. Prior Range was 702 handles on 777k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 13410       PVA Low Edge = 13150      Prior POC = 13290

Bull Scenario: IF Bulls sustain a bid above 13060, THEN initial upside estimate targets 13150 – 13225 zone.

Bear Scenario: IF Bears sustain an offer below 13060, THEN initial downside estimate targets 12935 – 12845 zone.

Range Projections and Key Levels (NQ) March 2021 (H) Contract

HOD  ATR Range Projection: 13111; LOD ATR Range Projection: 12925; 3 Day Central Pivot: 13362; 3 Day Cycle Target: 13392; 10 Day Average True Range: 205; VIX: 32

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


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