A market comeback on Thursday helped the major averages break a three-day losing streak, while U.S. stock index futures tacked on another 0.3% overnight.
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Prior Session was Cycle Day 3 (CD3): This cycle’s rally which began from CD2 lower violation level (4053) was capped-off during prior session exceeding cycle target objectives. SPY 410 Call Options expiring 5/24 which were discussed in the AM Briefing more than tripled in value. Range was 84.75 handles on 1.441M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is currently holding prior cycle rally gains during overnight trade. Options Expiration is expected to have influence on price action this morning. Click on link above to learn more about what happens at options expiration. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4155, initially targets 4180 – 4185 zone.
2.) Price sustains an offer below 4155, initially targets 4140 – 4135 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4170 PVA Low Edge = 4136 Prior POC = 4155
Range Projections and Key Levels (ES) June 2021 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is currently trading at upper edge of 5-day value range following a strong prior session rally, capping off Positive 3 Day Cycle. Prior range was 372 handles on 459k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13520 PVA Low Edge = 13382 Prior POC = 13492
Bull Scenario: IF Bulls sustain a bid above 13492, THEN initial upside estimate targets 13532 – 13552 zone.
Bear Scenario: IF Bears sustain an offer below 13492, THEN initial downside estimate targets 13460 – 13440 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