Trade Strategy 10.3.18

Markets
 
In Asia, Japan -0.6%. Hong Kong -0.1%. China closed. India -1.5%
In Europe, at midday, London +0.4%. Paris +0.5%. Frankfurt -0.4%
Futures at 6:20, Dow +0.2%. S&P +0.3%. Nasdaq +0.3%. Crude +0.1% to $75.31. Gold +0.1% to $1207.70. Bitcoin -0.8% to $6456. 
Ten-year Treasury Yield +2 bps to 3.07%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

6:30 Fed’s Evans: Economic Outlook
7:00 MBA Mortgage Applications
8:05 Fed’s Barkin: “The Outlook for Tomorrow: Five Numbers to Watch”
8:15 ADP Jobs Report
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
12:00 PM Fed’s Harker Speech
1:00 PM Fed’s Reserve Gov. Lael Brainard:”Payment System”
2:15 PM Fed’s Mester speech
4:00 PM Jerome Powell Speech
8:00 PM Fed’s Kaplan speech 

S&P 500

Today is Cycle Day 3 (CD3)…Could it be breakout day to new all-time highs? Price has been vacillating and coiling within its current average range in “doji-style” fashion. Upside conversion of 2936 – 2940 zone offers bulls propulsion to achieve new highs. Trade back down into range would place doubt to this scenario. Current key support zone expands between 2919 – 2924 handles. Three-Day Central Pivot Zone has new higher lows which is bullish structure.

CD3 Range High = 2946.50          CD3 Range Low = 2916.00          CD3 Range Avg = 20.50 

Scenario 1: IF price holds bid above 2926, THEN initial upside target 2936, followed by 2943 – 2946 zone.

Scenario 2: IF price holds offers below 2926, THEN downside targets 2919 – 2916 zone.

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

HOD  ATR Range Projection: 2946.50; LOD ATR Range Projection: 2921.00; Cycle Day 1 Low: 2922.50; 3 Day Central Pivot: 2926.00; 3 Day Cycle Target: 2951.00; 10 Day Average True Range 17.50; VIX: 12.13

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…NAZ continues to find support at or near its 3 Day Central Pivot Zone and above Cycle Day 1 Low (7652.00). Both bullish structural context. Also range-bound, conversion above 7690 ( VAH-5) would support bullish scenario for higher prices. Break below recent lows would keep range scenario intact.

CD3 Range High = 7728.00         CD3 Range Low = 7596.00          CD3 Range Avg = 86.50

Scenario 1: IF price holds bid above 7662, THEN upside targets 7685 – 7694 zone.

Scenario 2: IF price holds offer below 7662, THEN downside targets 7652 – 7642 zone. Break below this zone measures 7626 – 7616 STAT-X Zone.

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

HOD  ATR Range Projection: 7721.00; LOD ATR Range Projection: 7603.00; Cycle Day 1 Low: 7652.00; 3 Day Central Pivot: 7668.75; 3 Day Cycle Target: 7716.00; 10 Day Average True Range: 79.00; VIX: 12.13

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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


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