Trade Strategy 8.24.22

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Durable Goods
10:00 Pending Home Sales
11:00 Survey of Business Uncertainty
1:00 PM Results of $45B, 5-Year Note Auction

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

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

10:30 EIA Petroleum Inventories

U.S. crude inventories fell by 5.63 million barrels for the week ended Aug. 19. That compared with a draw of 448,000 barrels reported by the API for the previous week. Economists were expecting a decline of about 3.2 million barrels. 

The API data also showed that gasoline inventories rose by 268,000 barrels last week, and distillate stocks increased by 1.05 million barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies fell by about 933,000 barrels last week.

S&P 500

***Written Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.

Prior Session was Cycle Day 2 (CD2): Normal CD2 unfolded, as price consolidated recent activity forming a neutral balanced day. Prior range was 44 handles on 1.544M contracts exchanged. 

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Positive 3 Day Cycle Statistic will be fulfilled with price trading above Cycle Day 1 Low (4131.50) during the RTH Session. As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 4130, initially targets 4145 – 4150 zone. 

Bear Scenario: Price sustains an offer below 4130, initially targets 4115 – 4110 zone.

PVA High Edge = 4146       PVA Low Edge = 4130         Prior POC = 4138

*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.

For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:

Link to access full Cycle Spreadsheet  > > Cycle Day 3 (CD3)

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

HOD  ATR Range Projection: 4190; LOD ATR Range Projection: 4070; 3 Day Central Pivot: 4182; 3 Day Cycle Target: 4169; 10 Day Average True Range  62; VIX: 20

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Prior session was a normal CD2 consolidation day…3-Day Cycle Statistic will be fulfilled as price trades above CD1 Low (12874.50) during RTH. Prior range was 195 handles on 556k contracts ts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 12930, THEN initial upside estimate targets 12975 – 13000 zone.

Bear Scenario: IF Bears sustains offer below 12930, THEN initial downside estimate targets 12880 – 12850 zone.

PVA High Edge = 12952       PVA Low Edge = 12895     Prior POC = 12930

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

HOD  ATR Range Projection: 13159; LOD ATR Range Projection: 12634; 3 Day Central Pivot: 13086; 3 Day Cycle Target: 13284; 10 Day Average True Range: 274; VIX: 20

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 SHOWN

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