Trade Strategy 1.5.18

Markets
 
U.S. employers likely maintained a brisk pace of hiring in December, with expectations for an increase of 190,000 positions for the month. If the Labor Department reports such a figure today, it would take the total number of new jobs in 2017 to 2.11M, ahead of analyst forecasts at the start of the year. The data, along with strong markets and the Dow’s record 25,000 milestone, could also pave the way for the Fed to raise interest rates in March.
 
In Asia, Japan +0.9%. Hong Kong +0.3%. China +0.2%. India +0.5%
In Europe, at midday, London +0.4%. Paris +0.8%. Frankfurt +1.1%
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude -0.9% to $61.44. Gold -0.3% to $1317.80. Bitcoin +5.8% to $16029. 
Ten-year Treasury Yield +1 bps to 2.47%
  
(Source: Seeking Alpha)

Economic Calendar

8:30 Non-farm payrolls
8:30 International Trade
10:00 Factory Orders
10:00 ISM Non-Manufacturing Index
10:15 Fed’s Harker: Economic Outlook
12:30 PM Fed’s Mester speech
1:00 PM Baker-Hughes Rig Count
10:15 Fed’s Mester Speech on Saturday

S&P 500 (ES)

Today is Cycle Day 3 (CD3)…Cycle targets have all been exceeded as Bull keeps charging higher with no signs yet of a top. Price is currently above PH (2729.00) with CD3 Penetration Levels measuring 2736 – 2737.25 zone.

Nasdaq 100 (NQ)

Bull held every test of lower support in prior session and has reasserted during overnight trade, pushing higher above PH (6617.50). CD3 Penetration Levels measure 6636, followed by 6654.00

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2738.68; LOD ATR Range Projection: 2717.07; Cycle Day 1 Low: 2692.25 3 Day Central Pivot: 2704.75; 3 Day Cycle Target: 2716.16; 10 Day Average True Range: 14.93; VIX: 9.12

**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 PH (2729.00), THEN upside targets 2735 – 2740 zone.

Scenario 2: IF price violates and converts 2725 handle, THEN downside measures 2720 – 2718 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


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