Markets

Stocks are going into September on a high, fueled by easy monetary policy from the Federal Reserve and a market still flush with cash. While the major averages fell back slightly on Tuesday, Dow and S&P 500 futures climbed another 0.4% overnight, and contracts linked to the Nasdaq were ahead by 0.2%. Investors are still on the lookout for a correction this month, given that stocks haven’t had a significant pullback since October 2020, which was the last time the S&P 500 fell by more than 5%.

Source: SeekingAlpha.com

Economic Calendar

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

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

10:30 EIA Petroleum Inventories

S&P 500

***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.

Tuesday’s Session was Cycle Day 1 (CD1): Price declined to projected range level (4512), where buyer’s responded. Balancing Day unfolded, since the prior session was an uptrend day. Range was 29.75 handles on 1.324M contracts exchanged. 

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Part of the rally from CD1 low (4512.50) is in-place, so price may continue to pause before the next directional thrust. As such, estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 4520, initially targets 4530 – 4535 zone. 

2.) Price sustains an offer below 4520, initially targets 4512 – 4506 zone.

*****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 2 (CD2)

PVA High Edge = 4525       PVA Low Edge = 4517         Prior POC = 4520

Range Projections and Key Levels (ES) Sept 2021 (U) Contract

HOD  ATR Range Projection: 4566; LOD ATR Range Projection: 4506; 3 Day Central Pivot: 4514; 3 Day Cycle Target: 4547; 10 Day Average True Range  34; VIX: 16

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has rallied off CD1 low (15517.75) fulfilling initial target objective (15601.50).  Prior range was 159.50 handles on 514k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 15598       PVA Low Edge = 15550      Prior POC = 15583

Bull Scenario: IF Bulls sustain a bid above 15583, THEN initial upside estimate targets 15608 – 15618 zone.

Bear Scenario: IF Bears sustain an offer below 15583, THEN initial downside estimate targets 15563 – 15543 zone.

Range Projections and Key Levels (NQ) Sept 2021 (U) Contract

HOD  ATR Range Projection: 15734; LOD ATR Range Projection: 15493; 3 Day Central Pivot: 15508; 3 Day Cycle Target: 15746; 10 Day Average True Range: 156; VIX: 16

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.”

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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