9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:00 Powell testifies before the committee on financial services
2:00 PM Fed’s Beige Book
***New: PTG Trading Room Chat Log’s Link
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Tuesday’s Session was Cycle Day 3 (CD3): Early rally attempt failed at the 4641 @spotgamma level. Sellers continued to pound price lower, settling into a range between 4560 – 4590, where 4596 was yet another key Gamma resistance. Market on Close (MOC) was a whopping $8 billion sell imbalance. Range was 111 handles on 2.705M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average decline objective (4577) normally for CD1 is in-place, so price may revisit prior low (4556) for a surety test. NOTE: 4550 is a “key reference” level for many traders, including the “gamma-guys” Given the elevated volatility, upside still has potential so stay flexible and manage risk accordingly. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4600, initially targets 4621 – 4628 zone.
2.) Price sustains an offer below 4600, initially targets 4590 – 4575 zone.
*****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 1 (CD1)
PVA High Edge = 4608 PVA Low Edge = 4560 Prior POC = 4572
Range Projections and Key Levels (ES) December 2021 (Z) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has rallied overnight fulfilling initial upside range objective (16406). Prior range was 387 handles on 842k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 16315 PVA Low Edge = 16073 Prior POC = 16142
Bull Scenario: IF Bulls sustain a bid above 16370, THEN initial upside estimate targets 16400 – 16430 zone.
Bear Scenario: IF Bears sustain an offer below 16370, THEN initial downside estimate targets 16315 – 16305 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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