Headlines from the fixed income world are rattling equity investors as the yield on the 10-year Treasury (US10Y) topped 4.00% for the first time since November. The 2-year yield (US2Y) also rose 2 basis points to 4.91% on Wednesday, hitting a new post-2007 high.
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 3943. Prior range was 48 handles on 1.972M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is back n fill consolidation to work off recent selling activity. Price has traded as low as TargetMaster Breakdown Level 1 Zone (3932 – 3927) during overnight activity, but has since recovered back to CD1 Low (3943). We will mark this level as today’s Line-in-Sand. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3943, initially targets 3955 – 3965 zone.
Bear Scenario: Price sustains an offer below 3943, initially targets 3930 – 3925 zone.
PVA High Edge = 3968 PVA Low Edge = 3950 Prior POC = 3955
Range Projections and Key Levels (ES) March 2023 (H) Contract
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 11925. Prior range was 217 handles on 750k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Today is Cycle Day 2 (CD2)…Normal for CD2 is back n fill consolidation to work off recent selling activity. Price has traded as low as TargetMaster Breakdown Level 1 Zone (11860 – 11850) during overnight activity, but has since recovered back to near CD1 Low (11925). We will mark this level as today’s Line-in-Sand. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 11925, THEN initial upside estimate targets 11960– 11970 zone.
Bear Scenario: IF Bears sustains offer below 11925, THEN initial downside estimate targets 11860 – 11850 zone.
PVA High Edge = 12028 PVA Low Edge = 11944 Prior POC = 11961
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
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