Markets
Investors are strapping on their seatbelts as they prepare for some wild trading in the week ahead. Volatility is likely to reign high due to a confluence of economic indicators, which include retail sales and a consumer price index that may show a print greater than 9%. Earnings season for Q2 will also begin, with companies likely to show elevated input costs and slower consumer spending that could weigh on outlooks going into the second half of 2022.
Source: SeekingAlpha.com
Economic Calendar
1:00 PM Results of $43B, 3-Year Note Auction
2:00 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 3 (CD3): Three-Day Cycle Objectives were fulfilled during this session. Prior range was 54 handles on 1.431M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 3816. Mid-Summer trade action has taken hold with lowering volumes and liquidity. Volatility ranges are expected to remain historically elevated. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3880, initially targets 3898 – 3905 zone.
Bear Scenario: Price sustains an offer below 3880, initially targets 3870 – 3865 zone.
PVA High Edge = 3915 PVA Low Edge = 3890 Prior POC = 3905
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 3954; LOD ATR Range Projection: 3835; 3 Day Central Pivot: 3875; 3 Day Cycle Target: 3976; 10 Day Average True Range 74; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Today is CD1 with Average Decline measuring 11759. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12066, THEN initial upside estimate targets 12108 – 12133 zone.
Bear Scenario: IF Bears sustains offer below 12066, THEN initial downside estimate targets 12022 – 11950 zone.
PVA High Edge = 12188 PVA Low Edge = 12066 Prior POC = 12157
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 12285; LOD ATR Range Projection: 11877; 3 Day Central Pivot: 12006; 3 Day Cycle Target: 12440; 10 Day Average True Range: 337; VIX: 26
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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