Markets
Another bloodbath rocked Wall Street yesterday as traders fully digested what an aggressive Fed will mean for the markets. The odds of a recession are rising fast with Jay Powell attempting to tackle inflation by reducing demand in a supply-constrained world (and risking labor market gains in the interim). The shakeup saw the Dow Jones Industrial Average tumble below the key 30,000 level for the first time since January 2021, while the S&P 500 and Nasdaq plunged further into bear market territory.
Source: SeekingAlpha.com
Economic Calendar
8:30 Powell Speaks
9:15 Industrial Production
10:00 Leading Indicators
1:00 PM Baker-Hughes Rig Count
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Markets did their best at holding firm while under continued selling pressure as finally an underlying bid absorption created a more normal Cycle Day 2 balanced day. Range was 191 handles on 2.233M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently below CD1 Low (3723) with favorable odds to recover this level to avert a second failed 3-Day Cycle. With contract rollover and the Fed out of the way, the only remaining event is QUAD OPEX today. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 3700, initially targets 3718 – 3727 zone.
Bear Scenario: Price sustains offer below 3700, initially targets 3685 – 3770 zone.
PVA High Edge = 3891 PVA Low Edge = 3656 Prior POC = 3670
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 3782; LOD ATR Range Projection: 3599; 3 Day Central Pivot: 3753; 3 Day Cycle Target: 3723; 10 Day Average True Range 114; VIX: 32
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently trading below CD1 Low (11358) with favorable odds of recovering this level to avert a second failed 3 Day Cycle. QUAD OPEX is on deck for today’s activity to close out an event-driven trading week. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 11300, THEN initial upside estimate targets 11338 – 11350 zone.
Bear Scenario: IF Bears sustains offer below 11300, THEN initial downside estimate targets 11355 – 11325 zone.
PVA High Edge = 11290 PVA Low Edge = 11094 Prior POC = 11157
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 11589; LOD ATR Range Projection: 10882; 3 Day Central Pivot: 11440; 3 Day Cycle Target: 11358; 10 Day Average True Range: 427; VIX: 32
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.”
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