Markets
Equity futures hugged the flatline overnight as the inflation story continues to play out, with the hope that the “transitory” chapter will be finished before an overheated villain appears.
Economic Calendar
8:30 Retail Sales
9:00 Fed’s William’s speech
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
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S&P 500
Prior session was Cycle Day 1 (CD1): Normal CD1 as price declined fulfilling downside range objective. Range was 37.75 handles on 1.566M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has bounced back to P-VAH (4359.25) during overnight activity. Typical action for CD2 would be some ‘back n fill’ consolidation to absorb recent activity. Range potential measures between 4366 – 4368 zone. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4360, initially targets 4370 – 4375 zone.
2.) Price sustains an offer below 4360, initially targets 4350 – 4345 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4359 PVA Low Edge = 4346 Prior POC = 4353
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
HOD ATR Range Projection: 4373; LOD ATR Range Projection: 4325; 3 Day Central Pivot: 4361; 3 Day Cycle Target: 4366; 10 Day Average True Range 35; VIX: 16.50
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has recovered approximately half of prior session’s decline. Normal expectation for CD2 is some consolidation, to balance out prior weakness. Prior range was 255 handles on 621k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14844 PVA Low Edge = 14728 Prior POC = 14773
Bull Scenario: IF Bulls sustain a bid above 14805, THEN initial upside estimate targets 14845 – 14870 zone.
Bear Scenario: IF Bears sustain an offer below 14805, THEN initial downside estimate targets 14773 – 14730 zone.
Range Projections and Key Levels (NQ) Sept 2021 (U) Contract
HOD ATR Range Projection: 14889; LOD ATR Range Projection: 14673; 3 Day Central Pivot: 14870; 3 Day Cycle Target: 14962; 10 Day Average True Range: 153; 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.”
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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