Trade Strategy 5.2.22

Markets

Economic Calendar

9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending

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

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

S&P 500

Prior Session was Cycle Day 1 (CD1): April ended on a sour note as month end institutional selling continued into the closing bell. Market on Close Sell Imbalance exceeded $7 billion. Prior range was 161 handles on 2.025M 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 to balance previous session with CD1 Low marked at 4118.75.  As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4118, initially targets 4148 – 4156 zone. 

Bear Scenario: Price sustains an offer below 4118, initially targets 4102 – 4092 zone.

PVA High Edge = 4276       PVA Low Edge = 4158         Prior POC = 4211

Range Projections and Key Levels (ES) June 2022 (M) Contract

HOD  ATR Range Projection: 4228; LOD ATR Range Projection: 4046; 3 Day Central Pivot: 4208; 3 Day Cycle Target: 4156; 10 Day Average True Range  111; VIX: 33

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Today we’ll be looking for a CD2 “normal” for price to stabilize recent wide-range selling volatility. CD1 low is marked at 12831.75. Prior range was 601 handles on 713k contracts traded.  As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustain a bid above 12832, THEN initial upside estimate targets 12990 – 13052 zone.

Bear Scenario: IF Bears sustain an offer below 12832, THEN initial downside estimate targets 12745 – 12660 zone.

PVA High Edge = 13443       PVA Low Edge = 13077     Prior POC = 13332

Range Projections and Key Levels (NQ) June 2022 (M) Contract

HOD  ATR Range Projection: 13286; LOD ATR Range Projection: 12499; 3 Day Central Pivot: 13148; 3 Day Cycle Target: 13250; 10 Day Average True Range: 480; VIX: 33

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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