U.S. stock markets have notched an impressive rally since mid-March, with the three major indices sailing out of correction territory in under two weeks. The Nasdaq pushed even higher on Monday, climbing 2% on sentiment surrounding Elon Musk’s big stake in Twitter (TWTR). Bulls argue that companies will continue to deliver bumper profits despite the Fed’s rate-hiking cycle, while so-called meme stocks are recording big increases in options activity. The sharp unanticipated rebound is having analysts rewrite their latest market forecasts, though some are holding strong by comparing it to a bear market trap.
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price did produce a shallow decline during GLOBEX, as our Key Line-In-Sand (4535) held firm. Mutual Fund Monday (MFM) rally kicked-in, fulfilling upside cycle objectives, as well as recovering previously failed CD1 Low (4574.75). Prior range was 52 handles on 988k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for a Cycle Day 2 is for some ‘back n fill’ consolidation activity. Strategy continues to be buying the dip as 4600 becomes next upside key objective.As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4565, initially targets 4580 – 4590 zone.
Bear Scenario: Price sustains an offer below 4565, initially targets 4555 – 4550 zone.
PVA High Edge = 4568 PVA Low Edge = 4535 Prior POC = 4562
Range Projections and Key Levels (ES) June 2022 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Recovery of previously failed CD1 Low and breakout above 14960 gave a spark to the rally, fulfilling upside range objectives. Normal for CD2 is for “back n fill’ activity to consolidate recent rally. Prior range was 373 handles on 451k contracts traded. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 15105, THEN initial upside estimate targets 15155 – 15170 zone.
Bear Scenario: IF Bears sustain an offer below 15105, THEN initial downside estimate targets 15085 – 15080 zone.
PVA High Edge = 15170 PVA Low Edge = 15020 Prior POC = 15105
Range Projections and Key Levels (NQ) June 2022 (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