Trade Strategy 10.10.18

Markets
 
In Asia, Japan +0.1%. Hong Kong +0.1%. China +0.2%. India +1.4%
In Europe, at midday, London flat. Paris -0.4%. Frankfurt -0.3%
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude flat at $74.93. Gold -0.1% to $1190.50. Bitcoin -1.6% to $6503. 
Ten-year Treasury Yield +1 bps to 3.22%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

7:00 MBA Mortgage Applications
8:30 Producer Price Index
10:00 Atlanta Fed’s Business Inflation Expectations
10:00 Wholesale Trade
11:30 Results of $36B, 3-Year Note Auction
12:15 PM Fed’s Evans: Economic Outlook
1:00 PM Results of $23B, 10-Year Note Auction
6:00 PM Fed’s Bostic: Economic Outlook

S&P 500

Today is Cycle Day 2 (CD2)…Price gyrated between key S&R Levels and fulfilled CD1 Average Decline projections settling back within key “Over/Under” Zone (2882 – 2888). Overnight trade is quiet as price is trading within its 5-day balanced Point-of-Control Zone.Expectation is for more of same action until either upper/lower price edge are converted.

CD2 Range High = 2902.00          CD2 Range Low = 2868.50         CD2 Range Avg = 20.25

Scenario 1: IF price holds bid above 2885 – 2890 zone, THEN upside targets 2898 – 2903 zone.

Scenario 2: IF price holds offer below 2885 – 2890 zone, THEN downside targets 2875 – 2871 zone.

Range Projections and Key Levels (ES) December (Z) Contract

HOD  ATR Range Projection: 2907.00; LOD ATR Range Projection: 2866.00; Cycle Day 1 Low: 2874.50; 3 Day Central Pivot: 2889.00; 3 Day Cycle Target: 2901.50; 10 Day Average True Range 25.00; VIX: 15.87

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price gyrated between key S&R Levels and fulfilled CD1 Average Decline projections settling back within key “Over/Under” Zone (7375 – 7400). Overnight trade is quiet as price is trading within its 5-day balanced Point-of-Control Zone.Expectation is for more of same action until either upper/lower price edge are converted.

CD2 Range High = 7430.50         CD2 Range Low = 7359.50          CD2 Range Avg = 90.50

Scenario 1: IF price holds bid above 7375 – 7400 zone, THEN upside targets 7430.50 – 7444.50 zone.

Scenario 2: IF price holds offer below 7375 – 7400 zone, THEN downside targets 7337 – 7323 zone.

Range Projections and Key Levels (NQ) December (Z) Contract

HOD  ATR Range Projection: 7495.00; LOD ATR Range Projection: 7295.50; Cycle Day 1 Low: 7337.00; 3 Day Central Pivot: 7404.50; 3 Day Cycle Target: 7444.50; 10 Day Average True Range: 116.50; VIX: 15.87

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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