Trade Strategy 12.23.21

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
8:30 Durable Goods
8:30 Personal Income and Outlays
10:00 New Home Sales
10:00 Consumer Sentiment
10:30 EIA Natural Gas Inventory
1:00 PM Baker-Hughes Rig Count
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): Price did produce a decline albeit shallow. When this occurs, the read-through is that the sellers are weak, resulting in a continuation rally. Range was 68 handles on 1.069M contracts exchanged. 

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price has extended above PH (4690) fulfilling CD2 Penetration Level (4701.50). Today is the final trading session before Christmas and with price hovering near 4700 strike, expectation will be for relatively light rotational volumes. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4690, initially targets 4702 – 4712 zone. 

2.) Price sustains an offer below 4690, initially targets 4678 – 4572 zone.

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

PVA High Edge = 4690       PVA Low Edge = 4648         Prior POC = 4686

Range Projections and Key Levels (ES) March 2022 (H) Contract

HOD  ATR Range Projection: 4766; LOD ATR Range Projection: 4621; 3 Day Central Pivot: 4618; 3 Day Cycle Target: 4687; 10 Day Average True Range  82; VIX: 18.50

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has extended current rally above PH (16183) fulfilling CD2 Penetration Level (16217) during overnight activity. Expectation for today is for relatively lighter volumes with bulls maintaining bid control ahead of Christmas holiday. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 16138       PVA Low Edge = 15978     Prior POC = 16114

Bull Scenario: IF Bulls sustain a bid above 16183, THEN initial upside estimate targets 16217 – 16234 zone.

Bear Scenario: IF Bears sustain an offer below 16183, THEN initial downside estimate targets 16176 – 16168 zone.

Range Projections and Key Levels (NQ) March 2022 (H) Contract

HOD  ATR Range Projection: 16526; LOD ATR Range Projection: 15833; 3 Day Central Pivot: 15870; 3 Day Cycle Target: 16183; 10 Day Average True Range: 380; VIX: 18.50

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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