Trade Strategy 1.27.20

Markets

Traders across the globe are starting the week in risk-off mode amid growing concerns over the potential economic damage from the fast-spreading coronavirus.

In the U.S., Dow futures plunged 477 points, while futures on the S&P 500 and Nasdaq are down 1.7% and 2.1%, respectively. Crude futures traded 3.5% lower at $52.28/bbl and gold rose 0.8% to $1584/oz.

Nearly 2,800 people in China have been infected and 80 killed by the disease, and over the last week, both numbers have been rising at close to 50% a day. “We don’t know how infectious it is, we don’t know how severe it is, and we don’t know how it’s spreading,” said Tom Frieden, former director of the CDC.

In Asia, Japan -2%. Hong Kong closed. China closed. India -1.1%.
In Europe, at midday, London -2.4%. Paris -2.3%. Frankfurt -2.2%.
Futures at 6:20, Dow -1.7%. S&P -1.7%. Nasdaq -2.1%. Crude -3.5% to $52.28. Gold +0.8% to $1583.80. Bitcoin +2.5% to $8626.
Ten-year Treasury Yield -7 bps to 1.61%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey
11:30 Results of $40B, 2-Year Note Auction
1:00 PM Results of $41B, 5-Year Note Auction

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

***PTG Trading Room Chat Log’s Link

S&P 500 (ES)

Today is a Cycle Day 2 (CD2)…Price begins today’s session trading down in excess of 42 handles and has surpassed all Cycle statistical levels. So where does that leave us for today’s trading? Simple: Following the trade strategy outlined below:

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.

*****ANNOUNCEMENT: PTG Trader Tool Box Indicator & Strategy Suite is now available for NinjaTrader 8 trading platform.

*****The 3 Day Cycle Spreadsheet which subscribers receive shortly after market close for next trading session contains all the projected range targets. Here is link to web page to learn more: http://polaristradinggroup.com/ptg-3-day-cycle/

CD2 Range High = 3260.00       CD2 Range Low = 3245.00    CD2 Range Avg = 25.50

Bull Scenario: IF Bulls hold bid above 3250, THEN initial upside potential targets 3260 – 3265 zone.

Bear Scenario: IF Bears hold offer below 3250, THEN initial downside objective targets 3240 – 3235 zone.

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

HOD  ATR Range Projection: 3260.00; LOD ATR Range Projection: 3245.00; 3 Day Central Pivot: 3315.00; 3 Day Cycle Target: 3310.00; 10 Day Average True Range 25.20: VIX: 18.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price begins today’s session trading down in excess of 42 handles and has surpassed all Cycle statistical levels. So where does that leave us for today’s trading? Simple: Following the trade strategy outlined below:

CD2 Range High = 9020.00          CD2 Range Low = 8965.00          CD2 Range Avg = 77.00

Bull Scenario: IF Bulls hold bid above 8986, THEN initial upside potential targets 9016 – 9030 zone.

Bear Scenario: IF Bears hold offer below 8986, THEN initial downside objective targets 8976 – 8965 zone.

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

HOD  ATR Range Projection: 9031.00; LOD ATR Range Projection: 8988.00; 3 Day Central Pivot: 9200.00; 3 Day Cycle Target: 9183.00; 10 Day Average True Range: 88.70; VIX: 18.00

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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