Markets
Yields take hold of stocks again
The broader market is pointing to a slightly higher open on Wall Street, but Treasury yields are pressuring tech shares again. The S&P (SPX, SPY) and Dow (INDU, DIA) futures are up, but the Nasdaq 100 futures (NDX:IND) are losing ground.
Source: SeekingAlpha.com
Economic Calendar
8:55 Redbook Chain Store Sales
9:00 Fed’s Quarles Speech
9:00 S&P CoreLogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
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S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined as expected fulfilling downside Statistical Deviation Zone before reversing, closing near highs of session. Prior range was 42.50 handles on 1.962M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is balancing / consolidation to absorb recent price activity. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3950, initially targets 3960 – 3965 zone.
2.) Price sustains an offer below 3950, initially targets 3940 – 3935 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3959 PVA Low Edge = 3934 Prior POC = 3942
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 3999; LOD ATR Range Projection: 3918; 3 Day Central Pivot: 3936; 3 Day Cycle Target: 3992; 10 Day Average True Range 50; VIX: 21
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading within prior value zone during overnight trade. Prior Range was 195.50 handles on 568k 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 12850, THEN initial upside estimate targets 12905 – 12925 zone.
Bear Scenario: IF Bears sustain an offer below 12850, THEN initial downside estimate targets 12820 – 12810 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13114; LOD ATR Range Projection: 12716; 3 Day Central Pivot: 12850; 3 Day Cycle Target: 13126; 10 Day Average True Range: 268; 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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