Markets (Top Stories)
Banks will kick off the Q2 earnings season today, leading off with JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC). For the most part, analyst earnings revisions don’t paint a pretty picture. Only one of the Big 6 U.S. Banks saw its Q1 earnings consensus estimate rise over the past six months. Analysts have cut their Q2 earnings estimates the most for Goldman (GS), which is expected to post its worst quarterly earnings in years, and Morgan Stanley (MS).
Prior Session was Cycle Day 3 (CD3): Positive Three-Day Cycle concluded in grand style as our 4550 target objective was fulfilled per DTS 7.13.23. Prior range was 42 handles on 1.088M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4517 handle. Bulls continue to carry the “momentum-ball” on this FRYDAY, though we cannot rule-out a late day liquidation. We’ll use 4550 / 4535 as today’s Line-in-Sand reference levels. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4550, initially targets 4570 – 4575 zone.
Bear Scenario: Price sustains an offer below 4535, initially targets 4520 – 4515 zone.
PVA High Edge = 4539 PVA Low Edge = 4520 Prior POC 4530
Range Projections and Key Levels (ES) Sept 2023 (U) Contract
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Positive Three-Day Cycle concluded in grand style as price pushed to highs of the day into the closing bell. Prior range was 285 handles on 552k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 15631 handle. Bulls continue to carry the “momentum-ball” on this FRYDAY, though we cannot rule-out a late day liquidation. We’ll use 15680 / 15740 as today’s Line-in-Sand reference levels. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 15740, initially targets 15780 – 15810 zone.
Bear Scenario: Price sustains an offer below 15680, initially targets 15640 – 15620 zone.
PVA High Edge = 15667 PVA Low Edge = 15521 Prior POC 15604
Range Projections and Key Levels (NQ) Sept 2023 (U) Contract
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!
“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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