Markets
Investors this morning are set to get a better take on whether inflation is here to stay, or if price pressures could threaten the market rally, with major averages hovering near record highs.
U.S. stock index futures were mixed before the latest CPI, with the Dow up 0.2% and Nasdaq off by the same amount (contracts linked to the S&P were flat).
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Consumer Price Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM Results of $19B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Price continued to consolidate failing to push to new all-time highs, as traders await fresh catalyst data. Prior range was 18 handles on 940k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Positive 3-day cycle statistic is in-place with price continuing to remain range bound. Contract Rollover begins today with September (U) being the new front month. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4235, initially targets 4243 – 4246 zone.
2.) Price sustains an offer below 4217, initially targets 4205 – 4190 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4214 PVA Low Edge = 4202 Prior POC = 4210
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4234; LOD ATR Range Projection: 4184; 3 Day Central Pivot: 4202; 3 Day Cycle Target: 4220; 10 Day Average True Range 32; VIX: 17
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has fulfilled 3 Day Cycle Statistic continuing to consolidate within 5-day value zone. Prior range was 100 handles on 370k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13844 PVA Low Edge = 13804 Prior POC = 13820
Bull Scenario: IF Bulls sustain a bid above 13740, THEN initial upside estimate targets 13840 – 13870 zone.
Bear Scenario: IF Bears sustain an offer below 13740, THEN initial downside estimate targets 13675 – 13594 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13864; LOD ATR Range Projection: 13700; 3 Day Central Pivot: 13635; 3 Day Cycle Target: 13814; 10 Day Average True Range: 128; 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.
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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