Markets
Equities are getting some of their momentum back at the end of a choppy week that saw a jump in inflation rattle the markets. All three major averages snapped three-day losing streaks by closing solidly in the green on Thursday, and while they’re still on track for hefty weekly losses, the positive sentiment stuck around overnight. Dow and S&P 500 futures rose by 0.5% and 0.7%, respectively, while contracts linked to the tech-heavy Nasdaq, which has been hit especially hard, climbed 1.1%
Source: SeekingAlpha.com
Economic Calendar
8:30 Retail Sales
8:30 Import/Export Prices
9:15 Industrial Production
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined, fulfilling lower Violation Levels, at which time buyers stepped-in with a strong bid, driving price higher by end of session. SpyGate (program trading) dominated with BUY Programs ($5B) throughout the session. Prior range was 97.50 handles on 2.331M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has extended prior session rally during overnight trade, fulfilling CD2 Penetration Level (4138). As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4138, initially targets 4145 – 4153 zone.
2.) Price sustains an offer below 4138, initially targets 4125 – 4117 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4125 PVA Low Edge = 4093 Prior POC = 4110
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4159; LOD ATR Range Projection: 4084; 3 Day Central Pivot: 4106; 3 Day Cycle Target: 4096; 10 Day Average True Range 54; VIX: 21.50
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is extended prior session rally fulfilling Rally Objective (13242). Prior Range was 446.50 handles on 591k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13168 PVA Low Edge = 13046 Prior POC = 13123
Bull Scenario: IF Bulls sustain a bid above 13238, THEN initial upside estimate targets 13260 – 13270 zone.
Bear Scenario: IF Bears sustain an offer below 13238, THEN initial downside estimate targets 13192 – 13180 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13332; LOD ATR Range Projection: 13000; 3 Day Central Pivot: 13140; 3 Day Cycle Target: 13242; 10 Day Average True Range: 260; VIX: 21.50
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