Markets
A major selloff has plagued the Dow and S&P 500, while the tech-heavy Nasdaq has been in a bear market since March, with nearly half of the index’s constituents off more than 50% below their 52-week highs.
Economic Calendar
8:45 Fed’s Bostic Speech
10:00 Wholesale Inventories (Preliminary)
12:30 PM Investor Movement Index
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 3 (CD3): There’s been no escaping the persistent selling last week as Friday managed at least to consolidate completing the Cycle. Prior range was 91 handles on 2.222M 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 4045 which was fulfilled during overnight session. Market is continuing its search for a trade-able low, so we’ll remain focused on staying in alignment with dominant force until there is a meaningful shift. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4060, initially targets 4085 – 4100 zone.
Bear Scenario: Price sustains an offer below 4060, initially targets 4035 – 4030 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4144 PVA Low Edge = 4100 Prior POC = 4120
Range Projections and Key Levels (ES) June 2022 (M) Contract
HOD ATR Range Projection: 4158; LOD ATR Range Projection: 3972; 3 Day Central Pivot: 4178; 3 Day Cycle Target: 4146; 10 Day Average True Range; 127; VIX: 33
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 12424 for this cycle day. Price is currently trading below PL (12519 ) with 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 12519, THEN initial upside estimate targets 12600 – 12675 zone.
Bear Scenario: IF Bears sustain an offer below 12519, THEN initial downside estimate targets 12424– 12350 zone.
PVA High Edge = 12867 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: 12118; 3 Day Central Pivot: 13020; 3 Day Cycle Target: 12832; 10 Day Average True Range: 520; 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.
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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