Investors are gearing up for one of the most eventful weeks of the summer, with futures ticking lower ahead of the busy slate. At the time of writing, Dow futures are off 0.5%, while contracts linked to the S&P 500 and Nasdaq are down 0.3% and 0.1%, respectively. The Fed is scheduled to meet on Wednesday (tapering or inflation comments?), we’ll get a print on Q2 GDP
Don’t forget earnings! About 165 S&P 500 companies are due to report in the biggest week of the season. Tech heavyweights like Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Facebook (FB) and Microsoft (MSFT) will take the spotlight, with the five companies comprising more than a fifth of the total market cap of the S&P 500. The results should illustrate how large businesses are withstanding the pandemic and a recent uptick in inflation.
***New: PTG Trading Room Chat Log’s Link
Prior session was Cycle Day 1 (CD1): Another strong Friday Session as prices recovered from early week weakness, surging higher to all-time highs. Range was 41 handles on 1.054M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): 3 Day Rally Objective (4401.50) has been fulfilled. Expectation for CD2 normally is for some ‘back n fill’ to consolidate recent price gains. Bulls remains solidly in-control, so any weakness is anticipated to be supported by the BTFD crowd. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4390, initially targets 4405 – 4410 zone.
2.) Price sustains an offer below 4390, initially targets 4380 – 4375 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4408 PVA Low Edge = 4380 Prior POC = 4403
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price notched another all-time high in previous session as Quarterly Earnings takes front seat this week in the Tech Sector. Normal expectation for CD2 is some consolidation, to absorb recent gains. Prior range was 183 handles on 429k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 15075 PVA Low Edge = 14934 Prior POC = 14978
Bull Scenario: IF Bulls sustain a bid above 15085, THEN initial upside estimate targets 15117 – 15127 zone.
Bear Scenario: IF Bears sustain an offer below 15085, THEN initial downside estimate targets 15050 – 15040 zone.
Range Projections and Key Levels (NQ) Sept 2021 (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.
Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.
This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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