The selloff in high-flying assets (like growth stocks and crypto) continues to extend to the broader market, with U.S. stock index futures falling overnight by 0.6%. While the major averages pared big early session losses on Wednesday, they still registered a third straight day of declines as cryptocurrency-linked shares plunged. In fact, the Nasdaq Composite Index is off by more than 5% over the last few weeks, on pace for its worst monthly performance since September 2020.
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Prior Session was Cycle Day 2 (CD2): Price continued this cycle’s decline until it reached the CD2 Violation Level (4053), at which time the buyers stepped-in and the rally took firm hold, driving price to close near high of day. Prior range was 73 handles on 1.387M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Three-Day Cycle Objective has been fulfilled during overnight trade as price recovery back above CD1 Low (4111.50) is required. We will mark the remainder of the session as a “wild-card” since price objectives have been fulfilled. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4112, initially targets 4123 – 4125 zone.
2.) Price sustains an offer below 4112, initially targets 4090 – 4085 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4100 PVA Low Edge = 4066 Prior POC = 4070
Range Projections and Key Levels (ES) June 2021 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has fulfilled 3 Day Cycle Statistic with price recovering back above CD1 Low (13178.50). Prior range was 289 handles on 659k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13232 PVA Low Edge = 13066 Prior POC = 13162
Bull Scenario: IF Bulls sustain a bid above 13232, THEN initial upside estimate targets 13252 – 13275 zone.
Bear Scenario: IF Bears sustain an offer below 13232, THEN initial downside estimate targets 13203 – 13178 zone.
Range Projections and Key Levels (NQ) June 2021 (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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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