Financial markets went on a roller-coaster ride on Thursday as traders monitored the latest happenings in Ukraine, where Russia used air, land and naval forces for an invasion that shocked the world. WTI crude oil surged to more than $100 a barrel for the first time since 2014, before dropping back to trade near the $90 level. The Nasdaq Composite even briefly went into a bear market, before turning a 3.5% intraday loss into a gain of 3.3%. Stock index futures are on the back foot again this morning, with Dow, S&P 500 and Nasdaq all off by 0.8% in early morning action.
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Markets rallied throughout the day, recovering lost opening gap, as defensive hedges (PUTS) were liquidated, providing a bid in futures. Prior range was 188 handles on 2.841M, contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading back in upper quartile of prior day’s range near highs of overnight activity. Being a CD2 day, expectation is for normal 2-way traffic activity as bulls and bears negotiate new price balance, though bulls have the current momentum advantage pre-RTH. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4290, initially targets 4315 – 4328 zone.
2.) Price sustains an offer below 4290, initially targets 4270 – 4250 zone.
PVA High Edge = 4195 PVA Low Edge = 4113 Prior POC = 4175
Range Projections and Key Levels (ES) March 2022 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading back near prior high overnight, holding firm bid post yesterday’s rally. Prior range was a whopping 958 handles on 1.108M contracts traded. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13498 PVA Low Edge = 13050 Prior POC = 13155
Bull Scenario: IF Bulls sustain a bid above 13983, THEN initial upside estimate targets 14156 – 14204 zone.
Bear Scenario: IF Bears sustain an offer below 13983, THEN initial downside estimate targets 13868 – 13760 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.
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