Markets
Dow futures retained their edge overnight as President Biden announced an agreement on a bipartisan infrastructure plan. Contracts linked to the index climbed 0.3%, though the other averages weren’t far behind, with the S&P 500 inching up 0.1% and Nasdaq ahead by 0.2%. The upward movement is a stark change from last week’s FOMC induced selloff, with all three indexes heading into today’s session up 2.4% for the week.
Source: SeekingAlpha.com
Economic Calendar
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
11:35 Fed’s Mester Speech
1:00 PM Fed’s Rosengren “Financial Stability”
3:00 PM Fed’s Williams Speech
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Aberrant CD1 as price continued it’s upward trek to new all-time high. Range was 32 handles on light volume…852k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is for some consolidation of recent gains, with an upside skew. Initial 3 Day Cycle objective (4261.50) has been fulfilled. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4264, initially targets 4271 – 4281 zone.
2.) Price sustains an offer below 4264, initially targets 4250 – 4240 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4259 PVA Low Edge = 4253 Prior POC = 4256
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
HOD ATR Range Projection: 4289; LOD ATR Range Projection: 4228; 3 Day Central Pivot: 4240; 3 Day Cycle Target: 4261; 10 Day Average True Range 35; VIX: 16
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has fulfilled it’s initial 3 Day Cycle objective (14355) and pre-RTH trading within prior value zone. Prior range was 152 handles on 405k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14392 PVA Low Edge = 14338 Prior POC = 14353
Bull Scenario: IF Bulls sustain a bid above 14355, THEN initial upside estimate targets 14420 – 14432 zone.
Bear Scenario: IF Bears sustain an offer below 14355, THEN initial downside estimate targets 14332 – 14320 zone.
Range Projections and Key Levels (NQ) Sept 2021 (U) Contract
HOD ATR Range Projection: 14392; LOD ATR Range Projection: 14229; 3 Day Central Pivot: 14276; 3 Day Cycle Target: 14355; 10 Day Average True Range: 163; VIX: 16
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