Trade Strategy 9.7.22

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Goods and Services Trade
10:00 Fed’s Mester Speech
11:55 Fed’s Brainard Speech
2:00 PM Fed’s Barr Speech
2:00 PM Fed’s Beige Book

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

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

S&P 500

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

Prior Session was Cycle Day 3 (CD3): As expected trading produced a wide swing volatile session which completed a Positive 3 Day Cycle. Prior range was 76.50 handles on 2.059M contracts exchanged. 

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Expectation is for continued wide swing price moves as traders seek adjusted “accepted value”, which appears to be located between 3900 – 3950 handles. IF the market can raise and sustain a bid above the upper edge of range (3950), THEN 4000 Strike Zone comes back into play. Sustained offering below 3950 keeps volatile swings dominant . #KNOWYOURMIL As such, estimated scenarios to consider for today’s trading.

Bull Scenario: Price sustains a bid above 3915, initially targets 3945 – 3950 zone. 

Bear Scenario: Price sustains an offer below 3915, initially targets 3890 – 3885 zone.

PVA High Edge = 3930       PVA Low Edge = 3893         Prior POC = 3908

*****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 1 (CD1)

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

HOD  ATR Range Projection: 3930; LOD ATR Range Projection: 3894; 3 Day Central Pivot: 3935; 3 Day Cycle Target: 3978; 10 Day Average True Range  81; VIX: 26

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 12040 which is currently in-place. Price has rebounded off lows as bulls seek to find traction and firmer ground to stabilize recent selling. We’ll be looking for a consolidation type day, albeit with potential wide swings, as volatility remains elevated. Prior range was 314 handles on 752k contracts ts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

Bull Scenario: IF Bulls sustains bid above 12045, THEN initial upside estimate targets 12075– 12095 zone.

Bear Scenario: IF Bears sustains offer below 12045, THEN initial downside estimate targets 12000 – 11975 zone.

PVA High Edge = 12120       PVA Low Edge = 11977     Prior POC = 12043

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

HOD  ATR Range Projection: 12238; LOD ATR Range Projection: 11762; 3 Day Central Pivot: 12114; 3 Day Cycle Target: 12142; 10 Day Average True Range: 316; 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 SHOWN

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