8:30 Initial Jobless Claims
8:30 Producer Price Index
8:35 Fed’s Bullard Speech
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 2 (CD2): As expected, price did decline to test the CD1 Low (4317.25) as we wrote in DTS 10.13.21 >>> “Potential is high for price to retest the CD1 Low (4317.25) before this cycle’s rally can be sustained.” Range was 46 handles on 1.328M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): This cycle’s rally which began from successful test of CD1 Low (4317.25) is extending above PH (4364.75) fulfilling upper CD3 Penetration Zone. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4390, initially targets 4405 – 4410 zone.
2.) Price sustains an offer below 4390, initially targets 4375 – 4370 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4356 PVA Low Edge = 4335 Prior POC = 4354
Range Projections and Key Levels (ES) December 2021 (Z) Contract
HOD ATR Range Projection: 4430; LOD ATR Range Projection: 4329; 3 Day Central Pivot: 4350; 3 Day Cycle Target: 4368; 10 Day Average True Range 62; VIX: 17.50
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Following successful test of CD1 Low (14585) during previous session, price has rallied above PH (14796) during overnight activity fulfilling upper Penetration Zone objectives. Price is trading below PL (14790.75) having fulfilled cycle objectives. This is 325 unanswered handles. Prior range was 205 handles on 544k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14760 PVA Low Edge = 14691 Prior POC = 14722
Bull Scenario: IF Bulls sustain a bid above 14900, THEN initial upside estimate targets 14920 – 14925 zone.
Bear Scenario: IF Bears sustain an offer below 14900, THEN initial downside estimate targets 14875 – 14870 zone.
Range Projections and Key Levels (NQ) December 2021 (Z) Contract
HOD ATR Range Projection: 15003; LOD ATR Range Projection: 14668; 3 Day Central Pivot: 14709; 3 Day Cycle Target: 14788; 10 Day Average True Range: 237; VIX: 17.50
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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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