Markets
U.S. equity indices finished Wednesday’s session with modest gains, as Wall Street reacted positively to details about the Feds strategy to contain inflation. Investors cheered signs that the central bank was committed to preventing price pressures from becoming entrenched, even if that came at a cost of slowing the U.S. economy. Seven of the 11 S&P sectors finished the session higher, but “Utilities” was the only one to post a gain of as high as 1%, as fears of recession continue to linger in the background
Economic Calendar
8:15 ADP Jobs Report
8:30 Initial Jobless Claims
8:30 Goods and Services Trade
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:00 PM Fed’s Waller: U.S. Economy and Monetary Policy
1:00 PM Fed’s Bullard: U.S. Economy and Monetary Policy
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal Cycle Day 1 as price declined to establish a low at 3808.75 during the globex session. RTH consolidated throughout the day with a final hourly push to higher ground. Prior range was 66 handles on 1.639M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is holding higher bid during overnight activity as expectation is for continued consolidation with a bullish lean, as bulls are currently in-control. Developing value is building higher highs and higher lows confirming the bullish sentiment. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3845, initially targets 3860 – 3865 zone.
Bear Scenario: Price sustains an offer below 3845, initially targets 3830 – 3825 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 3845 PVA Low Edge = 3816 Prior POC = 3831
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 3922; LOD ATR Range Projection: 3777; 3 Day Central Pivot: 3824; 3 Day Cycle Target: 3912; 10 Day Average True Range; 90; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is holding bid during overnight activity as expectation today is for bullish lean consolidation. Volatility Index (VIX) has subsided to 26 which is supportive of the bullish lean. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 11868, THEN initial upside estimate targets 11940 – 11970 zone.
Bear Scenario: IF Bears sustain an offer below 11868, THEN initial downside estimate targets 11813– 11770 zone.
PVA High Edge = 11854 PVA Low Edge = 11770 Prior POC = 11813
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 12179; LOD ATR Range Projection: 11621; 3 Day Central Pivot: 11700; 3 Day Cycle Target: 12150; 10 Day Average True Range: 342; VIX: 26
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.
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.
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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