Trade Strategy 10.28.19

Markets

The financial markets have priced in a 50 basis-point rate cut by the Federal Reserve at this week’s FOMC meeting, possibly the third in the last three meetings. Opinions vary on the effectiveness of the cuts since rates are already low, so lowering them further may not have the desired effect and would take away some of its powder for future interventions.

In Asia, Japan +0.30%. Hong Kong +0.84%. China +0.85%. India Closed.
In Europe, at midday, London -0.37%. Paris -0.16%. Frankfurt +0.06%.
Futures at 5:30, Dow +0.19%. S&P +0.15%. Nasdaq +0.25%. Crude -0.60% to $56.32. Gold +0.27% to $1,509.40. Bitcoin +1.56% to $9,447.
Ten-year Treasury Yield +3 bps to 1.833%.

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

8:30Chicago Fed National Activity Index
8:30International Trade in Goods
8:30Retail Inventories (Advance)
8:30Wholesale Inventories (Advance)
10:30Dallas Fed Manufacturing Survey

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

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…ES begins this last week of October in fine shape having fulfilled cycle objectives and pushing for higher levels. We’ve been maintaining a long-bias which will be carried over into today’s session. Stay focused on high-quality core setups within the context of bullish trend.

*****ANNOUNCEMENT: PTG Trader Tool Box Indicator & Strategy Suite is now available for NinjaTrader 8 trading platform.

*****The 3 Day Cycle Spreadsheet which subscribers receive shortly after market close for next trading session contains all the projected range targets. Here is link to web page to learn more: http://polaristradinggroup.com/ptg-3-day-cycle/

CD2 Range High = 3071.50       CD2 Range Low = 2980.25    CD2 Range Avg = 48.75

Scenario 1: IF Bulls hold bid above 3026, THEN initial upside potential targets 3035 – 3044 zone.

Scenario 2: IF Bears hold offer below 3026, THEN initial downside objective targets 3020 – 3012 zone.

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

HOD  ATR Range Projection: 3045.00; LOD ATR Range Projection: 3006.00; 3 Day Central Pivot: 3006.00; 3 Day Cycle Target: 3025.00; 10 Day Average True Range 23.00: VIX: 13.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…NQ begins this last week of October in fine shape having fulfilled cycle objectives and pushing for higher levels.

CD2 Range High = 8212.00          CD2 Range Low = 7911.00          CD2 Range Avg = 164.00

Scenario 1: IF Bulls hold bid above 8058, THEN initial upside potential targets 8070 – 8075 zone.

Scenario 2: IF Bears hold offer below 8058, THEN initial downside objective targets 8042 – 8036 zone.

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

HOD  ATR Range Projection: 8139.50; LOD ATR Range Projection: 7983.50; 3 Day Central Pivot: 7940.50; 3 Day Cycle Target: 8070.50; 10 Day Average True Range: 91.50; VIX: 13.00

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