Trade Strategy 4.7.21

Markets

Hovering near records

U.S. stock index futures wavered between slight gains and losses overnight, with the Dow Jones and S&P 500 drifting near record highs, and the Nasdaq not far behind. Wall Street took a breather on Tuesday, and could be in for some more restful days.

Source: SeekingAlpha.com

Economic Calendar

9:00 Fed’s Evans Speech
11:00 Fed’s Kaplan Speech
12:00 PM Fed’s Barkin: Economic Outlook and Monetary Policy
1:00 PM Fed’s Daly Speech
2:00 PM FOMC Minutes

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link


10:30 EIA Petroleum Inventories

S&P 500

***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.

Tuesday’s Session was Cycle Day 1 (CD1): Price only produced a shallow decline (4052.25) during the overnight session, while RTH experienced a bit more confusion on direction after hitting early session highs. Range was 23.75 handles on 1.233M contracts exchanged.

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Expectation for this cycle day is more consolidation, perhaps with a wider range should volatility increase. Volatility Index (VIX) has been hovering with an 18 handle, which makes for intra-day trading challenging with narrowing of the range. As such estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4060, initially targets 4075 – 4080 zone.

2.) Price sustains an offer below 4060, initially targets 4050 – 4045 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.

For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:

Link to access full Cycle Spreadsheet >> Cycle Day 2 (CD2)

PVA High Edge = 4073       PVA Low Edge = 4061         Prior POC = 4068

Range Projections and Key Levels (ES) June 2021 (M) Contract

HOD  ATR Range Projection: 4110; LOD ATR Range Projection: 4021; 3 Day Central Pivot: 4026; 3 Day Cycle Target: 4125; 10 Day Average True Range  46; VIX: 18

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Expectation for this cycle day is continued consolidation within two-day Value Zone between 13262 – 13540. Prior range was 131 handles on 451k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 13610       PVA Low Edge = 13558      Prior POC = 13585

Bull Scenario: IF Bulls sustain a bid above 13585, THEN initial upside estimate targets 13626 – 13655 zone.

Bear Scenario: IF Bears sustain an offer below 13585, THEN initial downside estimate targets 13540 – 13524 zone.

Range Projections and Key Levels (NQ) June 2021 (M) Contract

HOD  ATR Range Projection: 13802; LOD ATR Range Projection: 13359; 3 Day Central Pivot: 13370; 3 Day Cycle Target: 13888; 10 Day Average True Range: 226; VIX: 20

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.

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


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