In arguably the most important week for Wall Street this summer, with the Fed decision and GDP on tap, earnings could actually end up determining direction.
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Prior Session was Cycle Day 1 (CD1): Price action unfolded on this cycle day as expected as early strength reversed at Penetration Levels, driving price lower for the remainder of the session, establishing CD1 Low at 3941.50. Prior range was 75 handles on 1.688M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): price is expected to gap higher this morning as overnight action is taking back some of lost ground in previous session. The initial upside target (3980) has been fulfilled, so there may be a high dose of two-way traffic for today’s session. 4000 level remains a prominent options strike. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3985, initially targets 3995 – 4000 zone.
Bear Scenario: Price sustains an offer below 3985, initially targets 3967 – 3962 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 3985 PVA Low Edge = 3942 Prior POC = 3962
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is set to gap higher for the cash open, recovering much of previous session’s sell-down. Normal for CD2 is for two-way balancing action within the current elevated volatility environment. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 12470, THEN initial upside estimate targets 12525 – 12575 zone.
Bear Scenario: IF Bears sustain an offer below 12470, THEN initial downside estimate targets 12425– 12385 zone.
PVA High Edge = 12698 PVA Low Edge = 12420 Prior POC = 12575
Range Projections and Key Levels (NQ) Sept 2022 (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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