Markets
Following two consecutive quarters of negative growth, and a technical recession, the U.S. Commerce Department today will report GDP figures that will provide the latest snapshot of the American economy. Forecasters expect the nation to grow again in the July-to-September quarter, predicting an annualized expansion of 2.3%. That would mark a sharp reversal compared to the contractions of 1.6% in Q1 and 0.6% in Q2, and may mean the economy can weather more Fed rate hikes than previously expected.
Source: SeekingAlpha.com
Economic Calendar
8:30 Durable Goods
8:30 GDP Q3
8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $35B, 7-Year Note Auction
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Positive 3-Day Cycle Statistic was fulfilled as price pushed higher to reach CD3 Penetration Level before reversing direction and closing back near session midpoint. Prior range was 73 handles on 2.029M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 3815. Normal for CD1 is a decline to find a new secure cycle low. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3835, initially targets 3855 – 3865 zone.
Bear Scenario: Price sustains an offer below 3835, initially targets 3820 – 3815 zone.
PVA High Edge = 3865 PVA Low Edge = 3836 Prior POC = 3845
Range Projections and Key Levels (ES) December 2022 (Z) Contract
HOD ATR Range Projection: 3920; LOD ATR Range Projection: 3785; 3 Day Central Pivot: 3828; 3 Day Cycle Target: 3937; 10 Day Average True Range 108; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 11380. Prior range was 288 handles on 769k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 11415, THEN initial upside estimate targets 11460– 11480 zone.
Bear Scenario: IF Bears sustains offer below 11415, THEN initial downside estimate targets 11380 – 11330 zone.
PVA High Edge = 11549 PVA Low Edge = 11425 Prior POC = 11496
Range Projections and Key Levels (NQ) December 2022 (Z) Contract
HOD ATR Range Projection: 11681; LOD ATR Range Projection: 11122; 3 Day Central Pivot: 11505; 3 Day Cycle Target: 11740; 10 Day Average True Range: 398; VIX: 27
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.”
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