This morning, the 10-year Treasury yield is up another 7 bps, returning to the 1.6% level, triggering some fresh fears for investors. The developments saw stock futures decline overnight, led by tech shares, implying the recent uptick in demand for growth stocks was giving way at the end of the week. Dow -0.1%; S&P 500 -0.5%; Nasdaq -1.7%.
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Prior Session was Cycle Day 1 (CD1): Price produced a shallow decline during Globex as Trader Vic Gap Rule (TVGR) to effect for RTH Session, driving buyers to produce a new All-Time High in the S&P Index. Range was 65.50 handles on 1.222M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has fulfilled this Cycle’s Objective 3946.84. Overnight trade has price retreating three-fourth’s of prior range back to 3900 handle. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3910, initially targets 3925 – 3930 zone.
2.) Price sustains an offer below 3910, initially targets 3900 – 3890 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3946 PVA Low Edge = 3916 Prior POC = 3942
Range Projections and Key Levels (ES) June 2021 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has relinquished prior session’s entire range during Globex Session. Buyers have responded at the 3 Day Central Pivot Zone (12780 – 12836). Prior Range was 395 handles on 1.134M contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12690 PVA Low Edge = 12475 Prior POC = 12550
Bull Scenario: IF Bulls sustain a bid above 12820, THEN initial upside estimate targets 12920 – 12970 zone.
Bear Scenario: IF Bears sustain an offer below 12820, THEN initial downside estimate targets 12790 – 12780 zone.
Range Projections and Key Levels (NQ) June 2021 (M) 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.
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