Markets (Top Stories)
What goes up must come down… unless you have diamond hands. Some cracks are beginning to appear in the recent AI stock rally, with C3.ai (AI) plunging 22% AH on Wednesday after giving a disappointing outlook during its FQ4 results.
Snapshot: Other AI players and chipmakers also pulled back yesterday following some impressive runups, but the latest movement might suggest that all companies are not equal when it comes to the “AI supercycle.”
8:15 ADP Jobs Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:00 PM Fed’s Harker Speech
4:30 PM Fed Balance Sheet
Prior Session was Cycle Day 2 (CD2): Selling continued into this cycle day as price fulfilled the 4175 lower target outlined in prior DTS 5.31.30 briefing. Prior range was 44 handles on 2.040M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Today marks the end of the cycle and beginning of new month. Odds favor recovery back above CD1 Low (4200) to secure a positive 3-day cycle statistic. Once fulfilled, it will be a “wild-card” for direction. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4200, initially targets 4215 – 4220 zone.
Bear Scenario: Price sustains an offer below 4200, initially targets 4185 – 4180 zone.
PVA High Edge = 4203 PVA Low Edge = 4183 Prior POC = 4195
Range Projections and Key Levels (ES) June 2023 (M) Contract
Nasdaq 100 (NQ)
Prior Session was Cycle Day 2 (CD2): Selling continued into this cycle day as price fulfilled the lower target 14260. Prior range was 178 handles on 666k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Today marks the end of the cycle and beginning of new month. Odds favor recovery back above CD1 Low (14336.75) to secure a positive 3-day cycle statistic. Once fulfilled, it will be a “wild-card” for direction. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 14300, THEN initial upside estimate targets 14350– 14360 zone.
Bear Scenario: IF Bears sustains offer below 14300, THEN initial downside estimate targets 14260 – 14250 zone.
PVA High Edge = 14355 PVA Low Edge = 14280 Prior POC = 14345
Range Projections and Key Levels (NQ) June 2023 (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
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