U.S. stock futures started the week on the back foot on Monday, before things turned green and the major averages reached new highs. Will the same occur today? At the time of writing, Dow futures are off 0.5%, while contracts linked to the S&P 500 are down 0.4% and 0.3%, respectively. Fresh highs today would result in a six-day win streak on Wall Street and the latest slew of earnings could be enough to power the next leg of the journey.
Investors are waiting for the Fed’s view of inflation and monetary policy as the FOMC convenes its latest meeting today.
FOMC meeting begins
8:30 Durable Goods
8:55 Redbook Chain Store Sales
9:00 S&P CoreLogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
1:00 PM Results of $61B,5-Year Note Auction
1:00 PM Money Supply
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 2 (CD2): Price continued it’s firmness as intra-day dips were absorbed by the BTFD Crowd. Range was 41 handles on 905k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): 3-Day Cycle Target (4401) has been fulfilled, so we’ll mark today as a “wild-card” for direction. Current price swing is up and bulls are in-control, but as we know, the “trading weather” can change quickly. We remain vigilant, flexible and always in alignment with the current dominate force. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4403, initially targets 4417 – 4419 zone.
2.) Price sustains an offer below 4403, initially targets 4390 – 4387 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4413 PVA Low Edge = 4399 Prior POC = 4411
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price continues to hold firm bid during overnight activity. Prior range was 95 handles on 387k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 15120 PVA Low Edge = 15086 Prior POC = 15113
Bull Scenario: IF Bulls sustain a bid above 15100, THEN initial upside estimate targets 15134 – 15144 zone.
Bear Scenario: IF Bears sustain an offer below 15100, THEN initial downside estimate targets 15052 – 15038 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.
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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