Markets
That was the question at last month’s FOMC meeting, with monetary policymakers debating how much tightening would be needed to rein in inflation without shocking the economy. The minutes showed that “almost all” officials agreed it was appropriate to raise rates by 25 basis points, but there were “a few” that could have supported a larger 50 basis-point hike. As investors debated the hawkish/dovish signals, stocks rose and then fell, with equity futures climbing again overnight. Several other topics that were also discussed included financial stability, the labor market and even crypto, while Fed Chair Jerome Powell warned against complacency following the meeting.
Source: SeekingAlpha.com
Economic Calendar
8:30 GDP Q4
8:30 Initial Jobless Claims
8:30 Chicago Fed National Activity Index
10:30 EIA Natural Gas Inventory
10:50 Fed’s Bostic Speech
11:00 EIA Petroleum Inventories
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $35B, 7-Year Note Auction
2:00 PM Fed’s Daly Speech
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 2 (CD2): Normal CD2 as price oscillated between range parameters outlined in prior DTS 02.22.23 Briefing. Prior range was 41 handles on 1.873M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently above CD1 Low (4002) with a modest bid holding above Globex Open (4010). Bulls will need to continue with a sustained bid to secure a Positive 3-Day Cycle Statistic. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4010, initially targets 4025 – 4030 zone.
Bear Scenario: Price sustains an offer below 4010, initially targets 3995 – 3990 zone.
PVA High Edge = 4016 PVA Low Edge = 3997 Prior POC = 4006
Range Projections and Key Levels (ES) March 2023 (H) Contract
HOD ATR Range Projection: 4069; LOD ATR Range Projection: 3959; 3 Day Central Pivot: 4036; 3 Day Cycle Target: 4047; 10 Day Average True Range 64; VIX: 21
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently above CD1 Low (12090) with a modest bid holding above Globex Open (12176). Bulls will need to continue with a sustained bid to secure a Positive 3-Day Cycle Statistic. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12175, THEN initial upside estimate targets 12220– 12230 zone.
Bear Scenario: IF Bears sustains offer below 12175, THEN initial downside estimate targets 12135 – 12125 zone.
PVA High Edge = 12145 PVA Low Edge = 12078 Prior POC = 12100
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 12422; LOD ATR Range Projection: 11954; 3 Day Central Pivot: 12234; 3 Day Cycle Target: 12335; 10 Day Average True Range: 272; 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.
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