Trade Strategy 11.5.21

Markets

Source: SeekingAlpha.com

Economic Calendar

Snapshot: Consensus estimates call for 450K jobs added in October, though September’s report totaled 194K additional jobs, far short of a forecast of 500K. The unemployment rate is expected to tick down to 4.7% from 4.8%, while hourly wages are expected to climb by 4.9% on a year-over-year basis. That last number will be especially important for investors, given that the market is hyper-focused on inflation and whether it will continue to run hotter than expected.

Outlook: If job reports over the next few months point to stronger hiring, the Fed could accelerate its newly announced tapering plans. On the flip side, the central bank’s announcement this week put markets on high alert for inflation, meaning it will be more sensitive to economic reports in the near-term. The ADP National Employment Report already showed an acceleration in private payrolls on Wednesday, while the number of Americans filing new claims for unemployment benefits has remained under 300K for four straight weeks.

Source: SeekingAlpha.com

8:30 Non-farm payrolls
9:30 Fed’s George Speech
1:00 PM Baker-Hughes Rig Count
3:00 PM Consumer Credit

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

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

S&P 500

Prior Session was Cycle Day 3 (CD3):  Price consolidated throughout the session, never giving up ground as strong bid at 4660 prevented sellers from breaking lower. Range was 25 handles on 1.123M contracts exchanged.  

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline (4648) is far from being touched as price is continuing its upward trek above PH (4676.25) reaching CD1 Penetration Level (4687). during overnight activity. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4687, initially targets 4696 – 4702 zone. 

2.) Price sustains an offer below 4687, initially targets 4676 – 4673 zone. 

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

PVA High Edge = 4670       PVA Low Edge = 4658         Prior POC = 4664

Range Projections and Key Levels (ES) December 2021 (Z) Contract

HOD  ATR Range Projection: 4700; LOD ATR Range Projection: 4654; 3 Day Central Pivot: 4640; 3 Day Cycle Target: 4702; 10 Day Average True Range;  33; VIX: 15.30

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price is consolidating at upper edge of prior value area (16373) during overnight activity. Prior range was 246 handles on 516k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 16373       PVA Low Edge = 16257      Prior POC = 16315

Bull Scenario: IF Bulls sustain a bid above 16315, THEN initial upside estimate targets 16373 – 16400 zone.

Bear Scenario: IF Bears sustain an offer below 16315, THEN initial downside estimate targets 16258– 16233 zone.

Range Projections and Key Levels (NQ) December 2021 (Z) Contract

HOD  ATR Range Projection: 16493; LOD ATR Range Projection: 16232; 3 Day Central Pivot: 16094; 3 Day Cycle Target: 16393; 10 Day Average True Range: 191; VIX: 15.30

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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