Markets
U.S. equity futures are shaking off some of the concerns this morning, with the Nasdaq and S&P 500 up 0.4% and 0.1%, respectively, while the DJIA trails behind, down slightly at 0.1%. Higher-than-expected inflation data wasn’t the only thing to weigh on stocks, which greeted the Q2 earnings season with little fanfare.
Source: SeekingAlpha.com
Economic Calendar
10:00 Atlanta Fed’s Business Inflation Expectations
12:00 PM Powell Testifies on Semi-Annual Monetary Policy Report
1:30 PM Fed’s Kashkari Speech
2:00 PM Fed’s Beige Book
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
10:30 EIA Petroleum Inventories
S&P 500
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Tuesday’s Session was Cycle Day 2 (CD2): Price consolidated as expected with an upward lean fulfilling 3 Day Cycle objectives. Late day test of 4360 handle was successful, which converts to a key reference level. Range was 27.25 handles on 1.223M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): 3-Day Cycle Objectives have been fulfilled, so we’ll mark today as a “wild-card” for direction. Key-reference level is marked at 4360 and is today’s Line-in-Sand (LIS) as heavy trade activity unfolded at this price point late in prior session. Potential test of the Cycle Day 1 Low (4341.75) may also be in the works. Estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4360, initially targets 4375 – 4380 zone.
2.) Price sustains an offer below 4360, initially targets 4345 – 4340 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet > > Cycle Day 3 (CD3)
PVA High Edge = 4375 PVA Low Edge = 4360 Prior POC = 4367
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
HOD ATR Range Projection: 4382; LOD ATR Range Projection: 4336; 3 Day Central Pivot: 4357; 3 Day Cycle Target: 4376; 10 Day Average True Range 32; VIX: 16.50
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…3 Day Cycle objectives have been fulfilled, so we’ll mark today as a “wild-card”. Prior range was 200 handles on 502k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14936 PVA Low Edge = 14847 Prior POC = 14877
Bull Scenario: IF Bulls sustain a bid above 14850, THEN initial upside estimate targets 14920 – 14935 zone.
Bear Scenario: IF Bears sustain an offer below 14850, THEN initial downside estimate targets 14800 – 14795 zone.
Range Projections and Key Levels (NQ) Sept 2021 (U) Contract
HOD ATR Range Projection: 14977; LOD ATR Range Projection: 14802; 3 Day Central Pivot: 14832; 3 Day Cycle Target: 14886; 10 Day Average True Range: 136; VIX: 16.50
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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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