The beginning of so-called quantitative tightening commences today as the Fed lets bonds mature off its $9T balance sheet without replacement.
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:00 Job Openings and Labor Turnover Survey
11:30 Fed’s Williams Speech
1:00 PM Fed’s Bullard Speech
2:00 PM Fed’s Beige Book
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 2 (CD2): Normal CD2 as price oscillated throughout the session working on balancing the recent rally. Price is also working against 50 dma overhead at 4200, which the “gamma guys” view as key resistance. Range was 77 handles on 1.945M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Markets are trading in narrow range during overnight activity. Price needs to trade above the CD1 Low (4157.50) during RTH to fulfill the Cycle Statistic. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 4135, initially targets 4155 – 4158 zone.
Bear Scenario: Price sustains offer below 4135, initially targets 4125 – 4120 zone.
PVA High Edge = 4155 PVA Low Edge = 4123 Prior POC = 4131
Range Projections and Key Levels (ES) June 2022 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Wide range balancing day as CD2 “normal” unfolded during previous session. Price will need to trade above CD1 Low (12672.75) during RTH to fulfill Cycle Statistic. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12650, THEN initial upside estimate targets 12680 – 12696 zone.
Bear Scenario: IF Bears sustains offer below 12650, THEN initial downside estimate targets 12617 – 12585 zone.
PVA High Edge = 12752 PVA Low Edge = 12618 Prior POC = 12734
Range Projections and Key Levels (NQ) June 2022 (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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