Trade Strategy 10.22.19

Markets

Futures search for direction

U.S. stocks wavered between slight gains and losses overnight as traders continue to assess whether the two major themes dominating sentiment all year – the U.S.-China trade war and Brexit – will turn out all right. Early indications also suggest S&P 500 companies might avoid a first annual aggregate profits contraction since 2016, for the third quarter in a row. What’s going on in the bond market? 10-year Treasury yields are at their highest level in almost a month as the yield curve between three months and 10 years moves further back into positive territory.

In Asia, Japan closed. Hong Kong +0.2%. China +0.5%. India -0.9%.
In Europe, at midday, London +0.4%. Paris flat. Frankfurt +0.2%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.1%. Crude +0.5% to $53.77. Gold +0.2% to $1490.70. Bitcoin +0.4% to $8260.
Ten-year Treasury Yield -1 bps to 1.78%

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar

10:00Existing Home Sales
10:00Richmond Fed Mfg.
1:00 PMFed’s Kaplan Speech
1:00 PMResults of $40B, 2-Year Note Auction

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

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

S&P 500

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2960.00. Average Range for CD1 is 43.50 handles. Odds of decline > 10 handles = 73% Odds of decline > 20 = 44%

CD1 Range High = 3044.00       CD1 Range Low = 2971.00         CD1 Range Avg = 43.50

Scenario 1: IF Bulls hold bid above 3006, THEN initial upside targets 3016 – 3021 CD1 Penetration Zone.

Scenario 2: IF Bears hold offer below 3006, THEN initial downside targets 2996 – 2993 3 Day Central Pivot Zone.

Range Projections and Key Levels (ES) December 2019 (Z) Contract

HOD  ATR Range Projection: 3028.00; LOD ATR Range Projection: 2987.00; 3 Day Central Pivot: 2995.00; 3 Day Cycle Target: 3055.00; 10 Day Average True Range 27.00; VIX: 14.00

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 7800.00.  Average Range for CD1 is 134.25 handles. Odds of decline > 20 handles = 75% Odds of decline > 25 = 67%

CD1 Range High =8057.00           CD1 Range Low = 7858.00          CD1 Range Avg = 134.25

Scenario 1: IF Bulls hold bid above 7945, THEN initial upside targets 7974 – 8008 CD1 Penetration Zone.

Scenario 2: IF Bears hold offer below 7945, THEN initial downside targets 7926 – 7921 3 Day Central Pivot Zone.

Range Projections and Key Levels (NQ) December 2019 (Z) Contract

HOD  ATR Range Projection: 8030.50; LOD ATR Range Projection: 7884.00; 3 Day Central Pivot: 7926.00; 3 Day Cycle Target: 8106.00; 10 Day Average True Range: 95.00 VIX: 14.00

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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