Markets
Fourth quarter to open with solid gains
Traders appear to be betting on a better October for the market as futures rally against the backdrop of stimulus talks and the signing of a stopgap bill to avoid a U.S. government shutdown. Dow and S&P 500 futures are ahead by 1%, while contracts tied to the Nasdaq are 1.2% higher, following a session yesterday that ended in the green.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Personal Income and Outlays
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 1 (CD1): As with recent CD1 sessions, price declined and established early session low (3291.25) at which time this cycle’s rally began. Price closed mid-range of session. Range was 92.75 handles on 2.105M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently continuing in rally-mode, trading at prior high (3384). Clearing and converting this level targets CD2 projected Penetration Level (3400.50). As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3384, initially targeting 3396 – 3400 zone.
2.) Price sustains an offer below 3384, initially targeting 3370 – 3365 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3370 PVA Low Edge = 3337 Prior POC = 3360
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3410; LOD ATR Range Projection: 3320; 3 Day Central Pivot: 3234; 3 Day Cycle Target: 3358; 10 Day Average True Range 67; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently trading above prior session’s range, extending this cycle’s rally targeting 11612 CD2 Penetration Level. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11471 PVA Low Edge = 10327 Prior POC = 11458
Bull Scenario: IF Bulls sustain a bid above 11525, THEN initial upside estimate targets 11600 – 11612 zone.
Bear Scenario: IF Bears sustain an offer below 11525, THEN initial downside estimate targets 11500 – 11485 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11660; LOD ATR Range Projection: 11287; 3 Day Central Pivot: 10338; 3 Day Cycle Target: 11470; 10 Day Average True Range: 286; VIX: 26
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.
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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