Stock index futures are mixed ahead of final session for January, with contracts linked to the Dow and S&P 500 inching lower, and the Nasdaq up by 0.4%. A spate of volatility continues to unnerve traders and investors alike on Wall Street, with equities rebounding strongly on Friday, closing decisively in the green. Despite the gains, the Nasdaq Composite is headed for its worst month since October 2008 and the worst first month of the year of all time, prompting many to consider whether it is time to “buy the dip” as we head into February:
9:45 Chicago PMI
10:30 Dallas Fed Manufacturing Survey
3:00 PM Farm Prices
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Prior Session was Cycle Day 3 (CD3): Volatile session as price regained all the previous session’s lost ground. Last wee was a “flip-flop” as price ranged in excess of 100 handles per day. Volatility appears to be sticking around for a while, so be sure to manage your risk accordingly. Prior range was 158 handles on 2.086M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Today begins a new cycle, with the Average Decline measuring 4335. Price is currently trading near top of last week’s range and with final hour of trading. Single profile prints mark prior sessions final 30 minutes with 4365 as key decision marker. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4400, initially targets 4425 – 4430 zone.
2.) Price sustains an offer below 4400, initially targets 4380 – 4375 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4380 PVA Low Edge = 4298 Prior POC = 4360
Range Projections and Key Levels (ES) March 2022 (H) Contract
HOD ATR Range Projection: 4514; LOD ATR Range Projection: 4393; 3 Day Central Pivot: 4358; 3 Day Cycle Target: 4432; 10 Day Average True Range; 127; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is extending previous session’s rally following a volatile week of trading. Average Decline for CD1 measures 13972. Prior range was 607 handles on 843k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 14440, THEN initial upside estimate targets 15516 – 15552 zone.
Bear Scenario: IF Bears sustain an offer below 14440, THEN initial downside estimate targets 14304– 11258 zone.
PVA High Edge = 14304 PVA Low Edge = 13997 Prior POC = 14223
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 15016; LOD ATR Range Projection: 14403; 3 Day Central Pivot: 14200; 3 Day Cycle Target: 14727; 10 Day Average True Range: 556; VIX: 28
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!
“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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