Trade Strategy 7.8.22

Markets

Investors this morning will be looking at the Labor Department’s view of how much hiring took place in June and what it says about the temperature of the overall economy. FOMC policymakers will also be watching the data, with Fed Chair Jay Powell recently calling the labor market “unsustainably high.” By tapping the economic brakes with restrictive policy, Powell hopes inflationary pressures will subside, while reducing risks of a wage-price spiral that fueled double-digit inflation in the 1970/80s. According to consensus estimates, the NFP report (released at 8:30 a.m ET) is expected to reveal 268,000 new jobs for June, down from the 390,000 jobs added in May.

Economic Calendar

8:30 Non-farm payrolls
8:30 Fed’s Williams Speech
10:00 Wholesale Inventories (Preliminary)
11:00 Fed’s Williams: U.S. Monetary Policy
1:00 PM Baker-Hughes Rig Count

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 2 (CD2): Prices continued their bullish climb fulfilling upside Cycle Penetration Targets. Range was 82 handles on 1.271M contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): There is is additional upside room to fulfill this cycle’s full target objective 3920. Support s marked at 3880 to start today’s session. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains bid above 3880, initially targets 3900 – 3915 zone. 

Bear Scenario: Price sustains offer below 3880, initially targets 3860 – 3855 zone.

PVA High Edge = 3909       PVA Low Edge = 3882        Prior POC = 3903

Range Projections and Key Levels (ES) Sept 2022 (U) Contract

HOD  ATR Range Projection: 3969; LOD ATR Range Projection: 3822; 3 Day Central Pivot: 3846; 3 Day Cycle Target: 3920; 10 Day Average True Range  86; VIX: 26

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has fulfilled this cycle’s upside objective (12166) during prior session. Bulls continue to have control and will be looking to end the shortened trading week strongly. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 12042, THEN initial upside estimate targets 12145 – 12170 zone.

Bear Scenario: IF Bears sustains offer below 12042, THEN initial downside estimate targets 12017 – 12000 zone.

PVA High Edge = 12167       PVA Low Edge = 12017     Prior POC = 12133

Range Projections and Key Levels (NQ) Sept 2022 (U) Contract

HOD  ATR Range Projection: 12385; LOD ATR Range Projection: 11797; 3 Day Central Pivot: 11860; 3 Day Cycle Target: 12166; 10 Day Average True Range: 333; 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.

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 SHOWN6.22.22


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