Trade Strategy 1.4.21

Markets

First session of the year

Traders awaiting the first opening bell of 2021 and stock index futures ahead by 0.5%. Wall Street is also keeping an eye on Georgia’s Senate runoff election tomorrow,

Source: SeekingAlpha.com

Economic Calendar

9:45 PMI Manufacturing Index
10:00 Construction Spending

10:00 Fed’s Evans: Economic Conditions and Monetary Policy
10:00 Fed’s Bostic Speech
12:15 PM Fed’s Mester Speech
12:30 PM Investor Movement Index
6:00 PM Fed’s Mester Speech

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

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 3 (CD3): Final session of 2020 unfolded as expected, with end of day buying to push price again to all-time high. Range was 38 handles on 916k contracts exchanged.

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline, with average measuring 3707. Overnight price has pushed above PH (3753) fulfilling 3771 3 Day Cycle Objective. Just like in “A Christmas Carol”…“The spirits have done it all in one night!”. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3765, initially targets 3774 – 3776 zone.

2.) Price sustains an offer below 3765, initially targets 3755 – 3750 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3744       PVA Low Edge = 3717         Prior POC = 3724

Range Projections and Key Levels (ES) March 2021 (H) Contract

HOD  ATR Range Projection: 3770; LOD ATR Range Projection: 3741; 3 Day Central Pivot: 3732; 3 Day Cycle Target: 3771; 10 Day Average True Range  32; VIX: 23

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price is trading above prior session’s value zone and has essentially fulfilled 12960 CD1 Penetration Level.. Prior Range was 99 handles on 277k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12853       PVA Low Edge = 12791      Prior POC = 12836

Bull Scenario: IF Bulls sustain a bid above 12940, THEN initial upside estimate targets 12960 – 12980 zone.

Bear Scenario: IF Bears sustain an offer below 12940, THEN initial downside estimate targets 12910 – 12900 zone.

Range Projections and Key Levels (NQ) March 2021 (H) Contract

HOD  ATR Range Projection: 12954; LOD ATR Range Projection: 12832; 3 Day Central Pivot: 12860; 3 Day Cycle Target: 12918; 10 Day Average True Range: 128; VIX: 23

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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