Trade Strategy 11.2.22

Markets

The next chapter

Another jumbo rate hike from the Fed is on tap this afternoon, with the central bank likely to announce its fourth 75 basis point move of the year. The hikes have so far added 3 percentage points to the federal funds rate in 2022 (which now ranges between 3.00% to 3.25%) and an increase today would bring it close to the 4-point mark that was last delivered in 1979 and 1980. The Fed is also predicted to announce another hefty increase in December to set a new record, though many are debating whether it will signal a downshift in its aggressiveness.

Source: SeekingAlpha.com

Economic Calendar

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

***Written Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.

Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined and established a low at 3852.50. Prior range was 75 handles on 1.830M contracts exchanged. 

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Normal for CD2 is for some consolidation of prior decline, although today is “FED DAY” with Presser at 2:30 following the 75 bps announcement. Volatility is expected to expand, so be sure to manage position risk aggressively. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 3850, initially targets 3875 – 3880 zone. 

Bear Scenario: Price sustains an offer below 3850, initially targets 3835 – 3830 zone.

PVA High Edge = 3883       PVA Low Edge = 3856         Prior POC = 3865

*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.

For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:

Link to access full Cycle Spreadsheet  > > Cycle Day 2 (CD2)

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

HOD  ATR Range Projection: 3935; LOD ATR Range Projection: 3808; 3 Day Central Pivot: 3882; 3 Day Cycle Target: 3962; 10 Day Average True Range  93; VIX: 26

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…FED DAY on tap for this session as expected volatility swings to drive the action today during Presser. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 11288, THEN initial upside estimate targets 11380– 11400 zone.

Bear Scenario: IF Bears sustains offer below 11288, THEN initial downside estimate targets 11255 – 11245 zone.

PVA High Edge = 11470       PVA Low Edge = 11307     Prior POC = 11345

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

HOD  ATR Range Projection: 11620; LOD ATR Range Projection: 11089; 3 Day Central Pivot: 11440; 3 Day Cycle Target: 11580; 10 Day Average True Range: 376; VIX: 26

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

Comments are closed.