8:30 Housing Starts and Permits
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
10:30 EIA Natural Gas Inventory
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined during the AM Session, finding buy response at projected 4425 level. The 2 pm “Shake n Bake” found buyers following the FOMC Minutes release which was “less hawkish”, forcing a short-cover rally into the closing bell. Prior range was 62 handles on 1.373M, contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading back within prior value zone during overnight trade activity. Being a CD2 day, expectation is for normal 2-way traffic activity as bulls and bears battle for control heading into tomorrow’s options expiration. Key Strike 4500 and CALL WALL according to the “Gamma Guys.” As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4460, initially targets 4480 – 4485 zone.
2.) Price sustains an offer below 4450, initially targets 4440 – 4435 zone.
PVA High Edge = 4463 PVA Low Edge = 4428 Prior POC = 4434
Range Projections and Key Levels (ES) March 2022 (H) Contract
HOD ATR Range Projection: 4521; LOD ATR Range Projection: 4388; 3 Day Central Pivot: 4328; 3 Day Cycle Target: 4501; 10 Day Average True Range 86; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading back within prior value zone during overnight trade activity. Cycle Day 2 normal is today’s expectation as price is “boxed” between key expiring options 350 & 360 strikes. Prior range was 288 handles on 588k contracts traded. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14575 PVA Low Edge = 14386 Prior POC = 14448
Bull Scenario: IF Bulls sustain a bid above 14555, THEN initial upside estimate targets 14615 – 14668 zone.
Bear Scenario: IF Bears sustain an offer below 14555, THEN initial downside estimate targets 14500 – 14448 zone.
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 14855; LOD ATR Range Projection: 14206; 3 Day Central Pivot: 14416; 3 Day Cycle Target: 14747; 10 Day Average True Range: 413; VIX: 25
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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