Trade Strategy 1.4.18

Markets
 
In Asia, Japan +3.3%. Hong Kong +0.6%. China +0.5%. India +0.5%
In Europe, at midday, London flat. Paris +1.1%. Frankfurt +1%
Futures at 6:20, Dow +0.3%. S&P +0.1%. Nasdaq +0.2%. Crude +0.4% to $61.89. Gold -0.3% to $1314.10. Bitcoin -4% to $14524. 
Ten-year Treasury Yield +2 bps to 2.46%
  
(Source: Seeking Alpha)

Economic Calendar

7:30 Challenger Job-Cut Report
8:15 ADP Jobs Report
8:30 Initial Jobless Claims
9:45 PMI Services Index
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:30 PM Fed’s Bullard: U.S. Monetary and Economic Policy
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Strength beget strength as price again surged higher notching fresh all-time highs, as mutual funds are flush with cash which was put to work. Much of this cycle’s rally is in-place as price reached and/or exceeded 3 Day Cycle targets all on Cycle Day 1. Expectation for today would be some back n fill action to absorb recent gains.

Nasdaq 100 (NQ)

NAZ reasserted the phrase..”So goes Nasdaq…so goes the market”…Classic “Gap n Go” surge in prior session had bears gasping for air throughout the session. Price exceed all range projections outlined in morning DTS Briefing Report. Expectation would be for some back n fill holding at or above prior VWAP Zone.

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2723.00; LOD ATR Range Projection: 2701.50; Cycle Day 1 Low: 2692.25 3 Day Central Pivot: 2690.50; 3 Day Cycle Target: 2716.16; 10 Day Average True Range: 14.53; VIX: 9.01

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: March 2018 (ESH) Contract

*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.

Scenario 1: IF price clears and converts 2717.25, THEN expansion targets measure 2723 – 2724 zone.

Scenario 2: IF price violates and converts 2707 to lower resistance, THEN lower targets measures 2702 – 2698 zone.

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