Markets
The economic symposium down in Jackson Hole was about as hawkish as investors could have expected, sending markets into a tailspin on Friday. All three major averages slumped between 3%-4%, sending risk-off signals to other sectors and asset classes (Bitcoin fell below $20K for the first time since early July). Sentiment may remain dented in the week ahead, or stay at somewhat of a standstill until the release of fresh market data (home prices on Tuesday and the jobs report on Friday). U.S. stock futures: Dow -0.9%; S&P 500 -1.1%; Nasdaq -1.3%.
Economic Calendar
10:30 Dallas Fed Manufacturing Survey
2:15 PM Fed’s Brainard Speech
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Hawks flying high in Jackson Hole as JPOW delivered the “pain” speech. Prices cascaded across the broad landscape closing the week near it’s low. Range was 174 handles on 2.129M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is well below CD1 Low (4143) and given the current “risk-off” sentiment, odds favor a failed cycle. Market will be searching for some stabilization today above 4000 level as seen as “key strike support.” As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 4025, initially targets 4035 – 4040 zone.
Bear Scenario: Price sustains offer below 4025, initially targets 4005 – 4000 zone.
PVA High Edge = 4138 PVA Low Edge = 4052 Prior POC = 4063
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 4075; LOD ATR Range Projection: 3972; 3 Day Central Pivot: 4140; 3 Day Cycle Target: 4039; 10 Day Average True Range 68; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price will be searching of some stabilization following last week’s sharp decline. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12465, THEN initial upside estimate targets 13530 – 13555 zone.
Bear Scenario: IF Bears sustains offer below 12465, THEN initial downside estimate targets 12410 – 12400 zone.
PVA High Edge = 13220 PVA Low Edge = 12761 Prior POC = 13140
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 12685; LOD ATR Range Projection: 12250; 3 Day Central Pivot: 12930; 3 Day Cycle Target: 12557; 10 Day Average True Range: 284; VIX: 27
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