Markets
Equities are starting the new year on the right foot, with Dow futures pointing to a 150-point advance at the open following a market boom in 2019. The festivities kicked off in Asia overnight, where the PBOC slashed its required cash reserve ratio for commercial lenders by 50 basis points, unleashing about 800B yuan ($115B) of liquidity into the financial system. The move to shore up the local economy saw the Shanghai Composite Index end the session up 1.2%, adding to the overall positive sentiment ahead of the signing of a ‘Phase One’ U.S.-China trade deal on Jan. 15.
In Asia, Japan closed. Hong Kong +1.3%. China +1.2%. India +0.8%.
In Europe, at midday, London +1%. Paris +1.3%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude +0.3% to $61.24. Gold flat at $1522.80. Bitcoin -0.5% to $7143.
Ten-year Treasury Yield +2 bps to 1.93%
(Source: Seeking Alpha) https://seekingalpha.com/
Economic Calendar
8:30 Initial Jobless Claims
9:45 PMI Manufacturing Index
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
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S&P 500
Today is Cycle Day 3 …Price is extending recent gains above prior high fulfilling 3 Day Cycle Objectives (3245) in fine fashion as traders ring-in the new year / decade with strong bullish sentiment.
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 = 3258.00 CD3 Range Low = 3227.00 CD3 Range Avg = 24.00
Scenario 1: IF Bulls hold bid above 3243, THEN initial upside targets 3250 – 3255 zone.
Scenario 2: IF Bears hold offer below 3243, THEN initial downside targets 3240 – 3235 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 3252.00; LOD ATR Range Projection: 3234.00; Cycle Day 1 Low: 3217.25; 3 Day Central Pivot: 3233.00; 3 Day Cycle Target: 3245.00; 10 Day Average True Range 17.58; VIX: 13.30
Nasdaq 100 (NQ)
Today is Cycle Day 3…Price is extending recent gains above prior high fulfilling 3 Day Cycle Objectives (8821) in fine fashion as traders ring-in the new year / decade with strong bullish sentiment.
CD3 Range High = 8830.00 CD3 Range Low = 8762.00 CD3 Range Avg = 84.00
Scenario 1: IF Bulls hold bid above 8812, THEN initial upside potential targets 8821 – 8835 zone.
Scenario 2: IF Bears hold offer below 8812, THEN initial downside targets 8804 – 8795 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 8835.00; LOD ATR Range Projection: 8757.00; Cycle Day 1 Low: 8691.25; 3 Day Central Pivot: 8763.00; 3 Day Cycle Target: 8821.00; 10 Day Average True Range: 65.00; VIX: 13.30
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.
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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