Something strange is happening in the equity market. Many have recently pointed to a Treasury yield hostage situation, where stocks have largely moved in response to their fixed-income counterparts. When bond yields moved up, high-growth names sold off, but even as the rates came down over the past three days, the tech sector was still under pressure. Some are even pointing to worries about the Fed hiking rates in far-off 2023, while others are mentioning frothy valuations and a rotation into industrial names, though trading volumes in the sector have also been softer in recent weeks.
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined as expected placing CD1 Low (3877.50). Range was 54 handles on 2.024M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal CD2 is balancing / consolidation, although downside momentum remains firmly intact, with the expectation of further selling pressure before the rally begins. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3878, initially targets 3895 – 3905 zone.
2.) Price sustains an offer below 3878, initially targets 3856 – 3848 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3928 PVA Low Edge = 3905 Prior POC = 3916
Range Projections and Key Levels (ES) June 2021 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading below prior value zone during overnight trade. Prior Range was 361 handles on 621k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13030 PVA Low Edge = 12866 Prior POC = 12959
Bull Scenario: IF Bulls sustain a bid above 12784, THEN initial upside estimate targets 12866 – 12900 zone.
Bear Scenario: IF Bears sustain an offer below 12784, THEN initial downside estimate targets 12735 – 12686 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.
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