Trade Strategy 1.12.18

Markets
 
In Asia, Japan -0.2%. Hong Kong +0.9%. China +0.1%. India +0.3%
In Europe, at midday, London +0.2%. Paris +0.3%. Frankfurt +0.2%
Futures at 6:20, Dow +0.4%. S&P +0.2%. Nasdaq +0.1%. Crude -0.6% to $63.43. Gold +0.7% to $1331.90. Bitcoin +5.5% to $14020. 
Ten-year Treasury Yield +2 bps to 2.55%
  
(Source: Seeking Alpha)

Economic Calendar

8:30 Consumer Price Index
8:30 Retail Sales
10:00 Business Inventories
12:30 PM Fed’s Harker Speech
1:00 PM Baker-Hughes Rig Count
4:30 PM Fed’s Rosengren: “Money, Models, and Digital Innovation”

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Opening gap up held form as bulls continued their stampede driving index to yet another new all-time high. Bears have essentially thrown-in the towel. Three-Day Cycle Target (2773.50) has been fulfilled, as such, any additional gains have potential expansion to 2780 – 83 zone.

Scenario 1: IF price clears and converts PH (2768.50), THEN upside penetration levels targets 2778 – 2780 zone. Average Range measures 2782.50.

Scenario 2: IF price violates and converts PH (2768.50) back to lower resistance, THEN initial downside targets 2759.50, followed by 2754.00 prior open range midpoint.

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2782.64; LOD ATR Range Projection: 2760.86; Cycle Day 1 Low: 2747.75 3 Day Central Pivot: 2753.25; 3 Day Cycle Target: 2773.50; 10 Day Average True Range: 15.89; VIX: 9.75

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Naz held opening range test of prior weekly high (6671.00) and prior close (6672.75), at which time bulls took total control driving price higher to close on high of session (6717.00). Three-Day Cycle Target (6729.50) has been achieved.

Scenario 1: IF price clears and converts PH (6717.50), THEN upside penetration levels measure 6740.25 – 6754.25 zone.

Scenario 2: IF price violates and converts PH (6717.50), back to lower resistance, THEN initial downside targets 6695, followed by 6684.

 

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6769.07; LOD ATR Range Projection: 6693.18; Cycle Day 1 Low: 6672.25 3 Day Central Pivot: 6684.75; 3 Day Cycle Target: 6729.50; 10 Day Average True Range: 51.32; VIX: 9.75

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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