Trade Strategy 8.9.22

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Productivity and Costs
1:00 PM Results of $42B, 3-Year Note Auction

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

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

S&P 500

Prior Session was Cycle Day 3 (CD3): Prices failed to sustain a bid above the CD2 high, ultimately violating the LIS (4166) reversing direction, selling off throughout the afternoon. Range was 59 handles on 1.487M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4108.  We’ll mark 4130 as key Line-in-the-Sand for over/under. 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 4125 – 4120 zone.

PVA High Edge = 4172       PVA Low Edge = 4133         Prior POC = 4143

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

HOD  ATR Range Projection: 4197; LOD ATR Range Projection: 4083; 3 Day Central Pivot: 4150; 3 Day Cycle Target: 4212; 10 Day Average True Range  72; VIX: 22

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Today is CD1 with Average Decline measuring 13105. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 13120, THEN initial upside estimate targets 13145 – 13155 zone.

Bear Scenario: IF Bears sustains offer below 13120, THEN initial downside estimate targets 13065 – 13045 zone.

PVA High Edge = 13308       PVA Low Edge = 13137     Prior POC = 13195

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

HOD  ATR Range Projection: 13420; LOD ATR Range Projection: 12895; 3 Day Central Pivot: 13256; 3 Day Cycle Target: 13436; 10 Day Average True Range: 338; VIX: 22

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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