Markets (Top Stories)
Market participants are shifting their focus to Big Tech as earnings season goes into overdrive with some of the biggest names in the industry set to publish Q2 results. On tap for today are earnings from Google (GOOG, GOOGL) and Microsoft (MSFT), which will report after the bell, as well as quarterly numbers from Meta Platforms (META) on Wednesday. The stocks are also part of the “Magnificent Seven,” which has led the big stock rally this year, as well as the Nasdaq 100 (NDX), which just underwent a “special rebalance” due to overconcentration.
Source: SeekingAlpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined, establishing a new cycle low at 4560. Prior range was 32 handles on 1.151M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Three-Fourth’s of this Cycle’s Rally is in-place, so we’ll be anticipating a more normal CD2 “two-way” trade with a bullish lean for today’s session. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4585, initially targets 4600 – 4605 zone.
Bear Scenario: Price sustains an offer below 4585, initially targets 4570 – 4565 zone.
PVA High Edge = 4588 PVA Low Edge = 4578 Prior POC = 4584
Range Projections and Key Levels (ES) Sept 2023 (U) Contract
HOD ATR Range Projection: 4617; LOD ATR Range Projection: 4555; 3 Day Central Pivot: 4575; 3 Day Cycle Target: 4610; 10 Day Average True Range 38; VIX: 14
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined, establishing a new cycle low at 15483. Prior range was 135 handles on 553k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): BIG TECH earnings are set to kick-off today. Traders will be focused on the numbers, so we’ll be anticipating a more normal CD2 “two-way” trade with a bullish lean for today’s session. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 15590, initially targets 15660 – 15685 zone.
Bear Scenario: Price sustains an offer below 15590, initially targets 15560 – 15530 zone.
PVA High Edge = 16582 PVA Low Edge = 15539 Prior POC = 15556
Range Projections and Key Levels (NQ) Sept 2023 (U) Contract
HOD ATR Range Projection: 15782; LOD ATR Range Projection: 15396; 3 Day Central Pivot: 15616; 3 Day Cycle Target: 15770; 10 Day Average True Range: 232; VIX: 14
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
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