Markets
Tech stocks got hammered again on Wednesday after the closely-watched Consumer Price Index soared 8.3% in April, which was more than the 8.1% estimate and close to the highest level in more than 40 years
Economic Calendar
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $22B, 30-Year Note Auction
4:00 PM Fed’s Daly Speech
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 3 (CD3): Market’s fulfilled 3-day Cycle Statistic as well as meeting target objectives before starting the decline throughout this session. Prior range was 127 handles on 2.103M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Today begins a new cycle, with the Average Decline measuring 3943 which was fulfilled during prior session. Market has yet to find a secure bottom, as every rally attempt is thwarted by “Sell The F’ing Rally” (STFR) crowd. Daily margin calls persist as each sector fails to sustain a lasting bid. Bulls must recover 3950 at minimum to squelch the current selling-spree. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3950, initially targets 3972 – 3985 zone.
Bear Scenario: Price sustains an offer below 3950, initially targets 3906 – 3895 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4018 PVA Low Edge = 3936 Prior POC = 3953
Range Projections and Key Levels (ES) June 2022 (M) Contract
HOD ATR Range Projection: 4022; LOD ATR Range Projection: 3823; 3 Day Central Pivot: 3998; 3 Day Cycle Target: 3970; 10 Day Average True Range; 130; VIX: 34
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 12052 for this cycle day which has been fulfilled during prior session. Price is currently trading below PL (11938) as Implied Volatility (IV) remains elevated. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 11938, THEN initial upside estimate targets 12052 – 12075 zone.
Bear Scenario: IF Bears sustain an offer below 11938, THEN initial downside estimate targets 11813– 11792 zone.
PVA High Edge = 12458 PVA Low Edge = 12675 Prior POC = 12803
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 12863; LOD ATR Range Projection: 12102; 3 Day Central Pivot: 12274; 3 Day Cycle Target: 12310; 10 Day Average True Range: 530; VIX: 34
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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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