Markets
U.S. stocks look ready to sing the bear market blues again this morning after the Bank of England shuffled sentiment with a dominant turnaround. Fearing a breakdown in market stability, the central bank on Wednesday promised to buy long-dated bonds “on whatever scale is necessary,” sending the yield on the 30-year gilt down by a full percentage point in the span of just a few hours. The chorus quickly spread across the Atlantic, with U.S. debt echoing similar moves, as the 10-year Treasury yield fell 26 bps to 3.71% for its largest one-day decline since March 2009.
Economic Calendar
8:30 GDP Q2
8:30 Initial Jobless Claims
8:30 Corporate profits
10:30 EIA Natural Gas Inventory
1:00 PM Fed’s Mester Speech
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 CD1 unfolded as price traded with a heavy sell bias, establishing a new CD1 Low @ 3613. Range was 138 handles, on 2.688M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): OPEX this week as 3700 is the most prominent Strike Level. We’ll be looking for continued two-way trade action rotating within this key strike zone. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3700, initially targets 3725 – 3730 zone.
Bear Scenario: Price sustains an offer below 3700, initially targets 3675 – 3670 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 3749 PVA Low Edge = 3668 Prior POC = 3735
Range Projections and Key Levels (ES) December 2022 (Z) Contract
HOD ATR Range Projection: 3770; LOD ATR Range Projection: 3642; 3 Day Central Pivot: 3787; 3 Day Cycle Target: 3760; 10 Day Average True Range; 93; VIX: 31
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Normal for CD2 is for some back n fill / stabilization along with OPEX for tomorrow will be main trade activity influence. Prior range was 472 handles on 884k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 11450, THEN initial upside estimate targets 11550 – 11565 zone.
Bear Scenario: IF Bears sustain an offer below 11450 THEN initial downside estimate targets 11365– 11350 zone.
PVA High Edge = 11527 PVA Low Edge = 11244 Prior POC = 11494
Range Projections and Key Levels (NQ) December 2022 (Z) Contract
HOD ATR Range Projection: 11694; LOD ATR Range Projection: 11234; 3 Day Central Pivot: 11400; 3 Day Cycle Target: 11643; 10 Day Average True Range: 333; VIX: 31
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.
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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