Trade Strategy 1.9.19

Markets
 
Stocks across the globe are marching higher after U.S.-China trade talks were extended for an unscheduled third day, fueling optimism that the world’s largest economies can avoid an all-out confrontation. Progress was seen on issues including purchases of U.S. farm and energy commodities, as well as increased access to China’s markets, but the two sides are still ways apart on Chinese structural reforms that would stop alleged theft and forced U.S. technology transfer.
 
In Asia, Japan +1.1%. Hong Kong +2.3%. China +0.7%. India +0.6%
In Europe, at midday, London +1%. Paris +1.1%. Frankfurt +1%
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +2.2% to $50.85. Gold -0.3% to $1281.80. Bitcoin -0.4% to $4018. 
Ten-year Treasury Yield +2 bps to 2.74%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

7:00 MBA Mortgage Applications
8:20 Fed’s Bostic Speech
9:00 Fed’s Evans Speech
10:30 EIA Petroleum Inventories
11:30 Fed’s Rosengren Speech
1:00 PM Results of $24B, 10-Year Note Auction
2:00 PM FOMC minutes

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

S&P 500

Today is Cycle Day 2 (CD2)…Markets are pushing higher in overnight trade extending this cycle’s rally which begin in prior session. Expectation for today’s session is for some “back n fill” action with a bullish trade bias. Key Pivot to hold above on any pullback is marked between 2568 – 2565 Central Pivot Zone.

CD2 Range High = 2592.00          CD2 Range Low = 2563.00         CD2 Range Avg = 61.00

Scenario 1: IF price clears and converts 2581.25, THEN initial upside potential targets 2590 – 2593 CD2 Penetration Range Zone. Further conversion extends targets measuring 2602 – 2608 zone.

Scenario 2: IF price fails to convert 2581.25, THEN initial downside potential pushes price back into prior range targeting 2571 – 2568 zone.

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

HOD  ATR Range Projection: 2628.25; LOD ATR Range Projection: 2527.25; Cycle Day 1 Low: 2547.50; 3 Day Central Pivot: 2539.00; 3 Day Cycle Target: 2608.00; 10 Day Average True Range 60.00; VIX: 20.00

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Markets are pushing higher in overnight trade extending this cycle’s rally which begin in prior session. Expectation for today’s session is for some “back n fill” action with a bullish trade bias. Key Pivot to hold above on any pullback is marked between 6543.25 – 6535.00 Central Pivot Zone.

CD2 Range High = 6602.00         CD2 Range Low = 6553.00          CD2 Range Avg = 190.00

Scenario 1: IF price clears and converts 6586.25, THEN initial upside potential targets 6602.50 – 6607.50 CD2 Penetration Range Zone. Further conversion extends targets measuring 6649.50 – 6667.00 zone.

Scenario 2: IF price fails to convert 6586.25, THEN initial downside potential pushes price back into prior range targeting 6543.25 – 6535.00 zone.

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

HOD  ATR Range Projection: 6736.00; LOD ATR Range Projection: 6420.50; Cycle Day 1 Low: 6467.25; 3 Day Central Pivot: 6453.25; 3 Day Cycle Target: 6667.00; 10 Day Average True Range: 189.00; VIX: 20.00

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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