1:00 PM Baker-Hughes Rig Count
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Prior Session was Cycle Day 1 (CD1): Normal CD1 unfolded as decline pushed price lower fulfilling the average decline objective (4672) as outlined in yesterday’s DTS 11.18.21 briefing. Range was 38.50 handles on 1.128M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading near the 5-day POC (4690) during overnight activity. It’s a BIG options expiration today, with approximately $8B worth of contracts expiring, per Spot Gamma. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4690, initially targets 4702 – 4706 zone.
2.) Price sustains an offer below 4690, initially targets 4680 – 4676 zone.
*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4704 PVA Low Edge = 4695 Prior POC = 4702
Range Projections and Key Levels (ES) December 2021 (Z) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price continues to power higher surpassing this cycle’s 3-day rally objective (16258). Options expiration is putting upside pressure to gamma shorts. Prior range was 204 handles on 593k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 16449 PVA Low Edge = 16326 Prior POC = 16690
Bull Scenario: IF Bulls sustain a bid above 16508, THEN initial upside estimate targets 16570 – 16584 zone.
Bear Scenario: IF Bears sustain an offer below 16508, THEN initial downside estimate targets 16490 – 16475 zone.
Range Projections and Key Levels (NQ) December 2021 (Z) Contract
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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