Trade Strategy 2.2.22

Markets

Source: SeekingAlpha.com

Economic Calendar

8:15 ADP Jobs Report

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

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

WTI crude oil prices are continuing to advance at a rapid pace, climbing 8% over the last week and 18% since the start of the year. In fact, the energy industry is sitting at the top of the S&P’s sector standings, with a 23% gain YTD compared to a 5.4% loss in the broader S&P 500. Oil and gas stocks also posted their best month in nearly a year in January, with crude prices at their highest level since October 2014 and analysts forecasting $100/bbl oil sooner or later.

10:30 EIA Petroleum Inventories

S&P 500

***Written Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.

Prior Session was Cycle Day 2 (CD2): This session unfolded as a normal Cycle Day 2 consolidation, with buyers absorbing all sellers, then ripped it higher into the closing bell. Market On Close Buy Imbalance of $2 Billion capped the day. Range was 81 handles on 1.530M contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Bullish momentum may carry into today’s session, so with cycle objectives already fulfilled, we’ll mark today as a “wild-card.”  As such, estimated scenarios to consider for today’s trading.

1.) Price sustains bid above 4555, initially targets 4574 – 4577 zone. 

2.) Price sustains offer below 4555, initially targets 4545 – 4535 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 3 (CD3)

PVA High Edge = 4512       PVA Low Edge = 4488        Prior POC = 4508

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

HOD  ATR Range Projection: 4682; LOD ATR Range Projection: 4440; 3 Day Central Pivot: 4454; 3 Day Cycle Target: 4474; 10 Day Average True Range  1136; VIX: 21

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price is extending this cycle’s rally pushing into CD3 upper Penetration Zone between 15224 – 15274 during overnight trade activity. Prior range was 408 handles on 588k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 15137, THEN initial upside estimate targets 15224 – 15274 zone.

Bear Scenario: IF Bears sustains offer below 15137, THEN initial downside estimate targets 15020 – 15000 zone.

PVA High Edge = 14944       PVA Low Edge = 14820     Prior POC = 14867

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

HOD  ATR Range Projection: 15687; LOD ATR Range Projection: 14676; 3 Day Central Pivot: 14647; 3 Day Cycle Target: 14727; 10 Day Average True Range: 583; VIX: 21

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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