Trade Strategy 1.4.19

Markets
 
A big market rebound is taking shape across the board after China’s commerce ministry announced that vice ministerial-level trade talks with the U.S. would be held on Jan. 7-8, as the two sides look to end a bruising dispute. The development was bolstered by positive data from China’s services sector, with Caixin’s services PMI jumping to a six-month high of 53.9 in December.
 
In Asia, Japan -2.3%. Hong Kong +2.2%. China +2.1%. India +0.5%
In Europe, at midday, London +1.2%. Paris +1.2%. Frankfurt +1.6%
Futures at 6:20, Dow -1.3%. S&P -1.5%. Nasdaq -1.9%. Crude +1.9% to $47.98. Gold -0.2% to $1292.40. Bitcoin -1% to $3789. 
Ten-year Treasury Yield
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Non-farm payrolls
9:45 PMI Services Index
10:15 Jerome Powell Speech
10:15 Fed’s Bostic Speech
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:00 PM Baker-Hughes Rig Count
8:00 Fed’s Williams Speech on Saturday
10:15 Fed’s Bostic Speech on Saturday

***New: PTG Trading Room Chat Log’s Link Click this link to view:

S&P 500

Today is Cycle Day 2 (CD2)…Price successfully tested CD1 Low (2443.25) and the rally has begun, pushing price past 2470.50, primary 3 Day Cycle Target. Secondary Target measures 2500.00. Key Over/Under is marked at 2472.

CD2 Range High = 2500.00          CD2 Range Low = 2425.00         CD2 Range Avg = 62.00

Scenario 1: IF price holds bid above 2463, THEN initial upside potential measures 2484 – 2488 3 Day Central Pivot Zone.

Scenario 2: IF price holds offer below 2463, THEN initial downside potential measures 2443.25 CD1 Low.

Range Projections and Key Levels (ES) March 19 (H) Contract

HOD  ATR Range Projection: 2505.50; LOD ATR Range Projection: 2420.00; Cycle Day 1 Low: 2443.25; 3 Day Central Pivot: 2484.50; 3 Day Cycle Target: 2500.00; 10 Day Average True Range 67.00; VIX: 24.00

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price successfully tested CD1 Low (6148.50) and the rally has begun, pushing price past 6414.50, primary 3 Day Cycle Target. Secondary Target measures 6337.00. Key Over/Under is marked at 6208.

CD2 Range High = 6334.00         CD2 Range Low = 6088.75          CD2 Range Avg = 197.50

Scenario 1: IF price holds bid above 6208, THEN initial upside potential measures 6267.50 – 6279.50 3 Day Central Pivot Zone.

Scenario 2: IF price holds offer below 6208, THEN initial downside potential measures 6148.50 CD1 Low.

Range Projections and Key Levels (ES) March 19 (H) Contract

HOD  ATR Range Projection: 6346.00; LOD ATR Range Projection: 6076.75; Cycle Day 1 Low: 6148.50; 3 Day Central Pivot: 6273.50; 3 Day Cycle Target: 6337.00; 10 Day Average True Range: 210.00; VIX: 24.00

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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