Investors today are bracing for another inflation report north of 8%, though the number may provide some relief for those looking for the CPI to start cooling off. While April’s Consumer Price Index is expected to come in at a flaming 8.1% Y/Y, the figure would be down from the 8.5% print seen in March, which marked the highest inflation level seen since the early 1980s.
***New: PTG Trading Room Chat Log’s Link
For a second time in a fortnight, U.S. crude prices broke below the $100-per barrel support, even ending under that mark on Tuesday.
And once again, oil bulls will likely be counting on weekly U.S. inventory data to restore the market’s upside.
***Written Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Prior Session was Cycle Day 2 (CD2): Price did continue its decent, though at a much decelerated rate, as we opined in previous DTS Strategy Briefing 5.10.22 Normal Cycle Day 2 as increased two-way traffic unfolded with key range projection levels (4065 – 3953) responded accordingly. Market on Close Sell Imbalance (MOC) measured $2.1 Billion. Prior range was 112 handles on 2.194M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): We’ll be looking for the markets to hold above CD1 Low (3970) and potentially stage a midweek relief rally, securing a Positive 3-Day Cycle Statistic. Key 5-day POC (4017) is the bogie for the bulls to clear and convert, in order to get a sustained move higher.. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4000, initially targets 4043 – 4051 zone.
Bear Scenario: Price sustains an offer below 4000, initially targets 3953 – 3936 zone.
PVA High Edge = 4025 PVA Low Edge = 3964 Prior POC = 3996
*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics 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 3 (CD3)
Range Projections and Key Levels (ES) June 2022 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Normal CD2 unfolded yesterday as selling decelerated and price stabilized within a broad range. Traders will be looking for more stabilization with the possibility of a modest relief rally to calm down an anxious market. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12450, THEN initial upside estimate targets 12551 – 12630 zone.
Bear Scenario: IF Bears sustains offer below 12450, THEN initial downside estimate targets 12385 – 12330 zone.
PVA High Edge = 12427 PVA Low Edge = 12180 Prior POC = 12280
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.
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