Trade Strategy 1.15.20

Markets

In Asia, Japan -0.5%. Hong Kong -0.4%. China -0.5%. India -0.2%.
In Europe, at midday, London +0.2%. Paris -0.1%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude -0.4% to $58.00. Gold +0.6% to $1554. Bitcoin +3.1% to $8746.
Ten-year Treasury Yield -3 bps to 1.79%

(Source: Seeking Alpha)  https://seekingalpha.com/

Economic Calendar

8:30 Producer Price Index
8:30 Empire State Mfg Survey
10:00 Atlanta Fed’s Business Inflation Expectations
10:30 EIA Petroleum Inventories
11:00 Fed’s Harker: “Monetary Policy Normalization: Low Interest Rates and the New Normal”
12:00 PM Fed’s Kaplan 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

Prior Session was Cycle Day 2 (CD2)…PTG Daily Trade Strategy (1.14.20) we wrote: ”Normal for CD2 is for some “back n fill” price action to absorb prior session’s rally from CD1 Low (3265). Key Line-In-Sand is marked at 3280 handle.” Cycle Price Objective 3294.50 was also fulfilled during RTH Session.”

This leads us into today’s Cycle Day 3 (CD3). Key “Line-In-Sand” Level 3280 was tested a number of times and has held firm. This level is now marked as “Key Decision Point Support” for subsequent sessions. Bulls continue to be responsive buyers on all dips to key support.

Penetration and hold above 3290 – 3295 zone keeps Bullish Bias intact, whereas, Violation and hold below 3280 – 3275 opens the door for deeper decline.

As PTG Trade Strategy states: 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.

CD3 Range High = 3300.00          CD3 Range Low = 3265.00          CD3 Range Avg = 21.75

Bull Scenario: IF Bulls hold bid above 3283, THEN initial upside targets 3290 – 3295 zone.

Bear Scenario: IF Bears hold offer below 3283, THEN initial downside targets 3280 – 3275 zone.

Range Projections and Key Levels (ES) March 2020 (H) Contract

HOD  ATR Range Projection: 3300.00; LOD ATR Range Projection: 3265.00; Cycle Day 1 Low: 3265.25; 3 Day Central Pivot: 3280.00; 3 Day Cycle Target: 3294.50; 10 Day Average True Range 23.00; VIX: 12.60

Nasdaq 100 (NQ)

Today is Cycle Day 3…Having fulfilled Cycle Targets, price is holding above Key Support (9035) and has returned to closing price (9063). Bulls will need to maintain bid at or above this level to continue the momentum built-up in previous sessions. Breakdown below support opens trap door to deeper decline.

CD3 Range High = 9086.00         CD3 Range Low = 9008.00          CD3 Range Avg = 79.50

Bull Scenario: IF Bulls hold bid above 9063, THEN initial upside potential targets 9078 – 9088 zone.

Bear Scenario: IF Bears hold offer below 9063, THEN initial downside targets 9043 – 9033 zone.

Range Projections and Key Levels (NQ) March 2020 (H) Contract

HOD  ATR Range Projection: 9113.00; LOD ATR Range Projection: 8988.00; Cycle Day 1 Low: 8979.00; 3 Day Central Pivot: 9043.00; 3 Day Cycle Target: 9052.25; 10 Day Average True Range: 87.00; VIX: 12.60

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