Trade Strategy 10.29.18

Markets
 
U.S. stock index futures are staging a comeback despite lingering concerns over rate hikes, earnings and global growth. Stocks fell sharply on Friday as investors slogged through another volatile session on Wall Street, which saw the S&P 500 end at its lowest level since early May and flirt with correction territory. Traders are now eyeing reports from about a quarter of S&P 500 companies, which will release earnings in what will be the last big week for Q3 results.
 
The Shanghai Composite slipped 2.2% overnight on fresh signs of cooling in the world’s second largest economy. Chinese data over the weekend showed slowing profit growth at industrial firms for the fifth consecutive month in September as sales of raw materials and manufactured goods ebbed. An escalating trade war with the U.S. has also added to pressure on overall output.
 
In Asia, Japan -0.2%. Hong Kong +0.4%. China -2.2%. India +2.2%
In Europe, at midday, London +1.5%. Paris +0.3%. Frankfurt +1.9%
Futures at 6:20, Dow +0.3%. S&P +0.6%. Nasdaq +0.9%. Crude -0.3% to $67.39. Gold -0.3% to $1232.20. Bitcoin -0.2% to $6416. 
Ten-year Treasury Yield +1 bps to 3.09%
 
The Boston Red Sox are once again World Series champions. Capping one of the best seasons in baseball history Sunday night, the BoSox claimed the championship title by beating the Los Angeles Dodgers, 5-1, in Game 5
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Personal Income and Outlays
9:45 Fed’s Evans Speech
10:30 Dallas Fed Manufacturing Survey

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

S&P 500

Today is Cycle Day 3 (CD3)…Price staged a strong rally during Globex session as price is currently trading within upper STATX Zone (2693.50 – 2701.25). Further strength above 2705 3 Day Pivot is required to further extend rally.

CD3 Range High = 2691.50          CD3 Range Low = 2669.50          CD3 Range Avg = 31.50 

Scenario 1: IF price holds bid above 2680, THEN upside target 2693.50 – 2701.25 STATX Zone.

Scenario 2: IF price holds offer below 2680, THEN downside targets 2658.75 (CD1 Low), followed by 2648.00.

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

HOD  ATR Range Projection: 2720.50; LOD ATR Range Projection: 2640.25; Cycle Day 1 Low: 2658.75; 3 Day Central Pivot: 2680.00; 3 Day Cycle Target: 2686.00; 10 Day Average True Range 61.00; VIX: 23.00

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Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price staged a strong rally during Globex session as price is currently trading near 6998 – 7007 CD3 range penetration zone.. Further strength above 6989.25 – 7019.00 STATX Zone is required to further extend rally.

CD3 Range High = 6998.00         CD3 Range Low = 6873.00          CD3 Range Avg = 118.50

Scenario 1: IF price holds bid above 6912, THEN upside targets 6989.25 – 7019.99 STATX Zone.

Scenario 2: IF price holds offer below 6912, THEN downside targets 6834.50 CD1 Low.

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

HOD  ATR Range Projection: 7105.00; LOD ATR Range Projection: 6766.00; Cycle Day 1 Low: 6834.50; 3 Day Central Pivot: 6912; 3 Day Cycle Target: 6948.00; 10 Day Average True Range: 225.00; VIX: 23.00

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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