Markets (Top Stories)
The Nasdaq Composite (COMP.IND) has officially exited a bear market as investors continue to pile back into tech stocks that have been shunned for much of the past year. A slight gain of 0.2% on Monday saw the popular index end the session at 12,256.92, up 20% from its closing low of 10,213.29 on Dec. 28. It took just 89 trading days for the index to record the new milestone, and follows a similar path of the related Nasdaq 100 Index (NDX), which surged into a new bull market back in March.
Source: seekingalpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Markets finished this positive cycle with an narrow range, light volume Inside Consolidation Day. Prior range was 23 handles on 998k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4127. Price is drifting lower pre-RTH, testing Prior Low (4137.50). Traders await the all-important CPI print tomorrow, so expectation for today is more of the same rhythms. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4130, initially targets 4150 – 4155 zone.
Bear Scenario: Price sustains an offer below 4130, initially targets 4120 – 4115 zone.
PVA High Edge = 4155 PVA Low Edge = 4145 Prior POC 4152
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4196; LOD ATR Range Projection: 4091; 3 Day Central Pivot: 4121; 3 Day Cycle Target: 4205; 10 Day Average True Range 50; VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Markets finished this positive cycle with an narrow range, light volume Inside Consolidation Day. Prior range was 113 handles on 502k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 13258. Price is drifting lower pre-RTH. Traders await the all-important CPI print tomorrow, so expectation for today is more of the same rhythms. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 13300, THEN initial upside estimate targets 13335– 13350 zone.
Bear Scenario: IF Bears sustains offer below 13300, THEN initial downside estimate targets 13260 – 13250 zone.
PVA High Edge = 13328 PVA Low Edge = 13265 Prior POC = 13316
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 13502; LOD ATR Range Projection: 13122; 3 Day Central Pivot: 13212; 3 Day Cycle Target: 13555; 10 Day Average True Range: 201; VIX: 17
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