Risk-off sentiment is taking the upper hand this morning as Omicron headlines fill up trading screens across the globe. The selloff began during the session in Asia, where the Hang Seng Index fell 2%, and then extended to Europe, where the EURO STOXX 50 slid nearly 3% by mid-morning trade. While things have since pulled off their lows, U.S., stock futures were off 2% at one point, and oil got hammered, with WTI crude futures slumping as much as 5.5% to $66.80/bbl.
10:00 Leading Indicators
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Prior Session was Cycle Day 1 (CD1): Normal CD1 as quadruple options expiration selling pressure favored the bears at week’s end. Range was 78 handles on 2.269M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Selling pressure has spilled over throughout globex session below CD1 Low (4590), fulfilling lower violation level (4540) before bouncing back to 4550 – 60 zone. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4550, initially targets 4565 – 4580 zone.
2.) Price sustains an offer below 4550, initially targets 4530 – 4525 zone.
*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4639 PVA Low Edge = 4607 Prior POC = 4627
Range Projections and Key Levels (ES) March 2022 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…NQ is continuing to feel the selling heat as price traded well below CD1 violation level (15607) during globex session, though has rebounded a bit pre-RTH, but still below CD1 Low (15652). As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 15900 PVA Low Edge = 15749 Prior POC = 15815
Bull Scenario: IF Bulls sustain a bid above 15585, THEN initial upside estimate targets 15610 – 15615 zone.
Bear Scenario: IF Bears sustain an offer below 15585, THEN initial downside estimate targets 15535 – 15505 zone.
Range Projections and Key Levels (NQ) March 2022 (H) 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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