Trade Strategy 10.20.22

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
12:00 PM Fed’s Harker Speech
2:05 PM Fed’s Bowman Speech
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 1 (CD1): Normal CD1 as price declined, established a new cycle low at 3676.75. Prior range was 97.50 handles on 2.293M contracts exchanged. 

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price is rallying off the CD1 Low (3676.75) to the 3-Day Central Pivot Zone and P-POC (3708). Normal for CD2 is for some consolidation to balance the past few wide-swing sessions. Volatility is expected to remain elevated for the foreseeable future, so manage trade risk properly. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 3710, initially targets 3725 – 3735 zone. 

Bear Scenario: Price sustains an offer below 3710, initially targets 3690 – 3680 zone.

PVA High Edge = 3725       PVA Low Edge = 3692         Prior POC = 3708

Range Projections and Key Levels (ES) December 2022 (Z) Contract

HOD  ATR Range Projection: 3770; LOD ATR Range Projection: 3627; 3 Day Central Pivot: 3710; 3 Day Cycle Target: 3780; 10 Day Average True Range  103; VIX: 30

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Cycle Day 1 Low was established at 11049 as high volatility remains the dominant theme this week. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 11105, THEN initial upside estimate targets 11160– 11180 zone.

Bear Scenario: IF Bears sustains offer below 11105, THEN initial downside estimate targets 11035 – 11005 zone.

PVA High Edge = 11225       PVA Low Edge = 11109     Prior POC = 11131

Range Projections and Key Levels (NQ) December 2022 (Z) Contract

HOD  ATR Range Projection: 11356; LOD ATR Range Projection: 10830; 3 Day Central Pivot: 11157; 3 Day Cycle Target: 11368; 10 Day Average True Range: 384; VIX: 30

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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