Trade Strategy 10.31.19

Markets

Futures fall back

Up for most of the night after the Fed cut rates for the third time this year – and indicated the possibility of a pause in the easing cycle – U.S. stock index futures are turning around sharply. The DJIA is now pointing to a 100-point decline at the open.

In Asia, Japan +0.4%. Hong Kong +0.9%. China -0.4%. India +0.2%.
In Europe, at midday, London -1%. Paris -0.6%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.4%. S&P -0.4%. Nasdaq -0.3%. Crude -0.3% to $54.89. Gold +0.8% to $1507.90. Bitcoin -1.7% to $9028.
Ten-year Treasury Yield -5 bps to 1.74%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

8:30Initial Jobless Claims
8:30Personal Income and Outlays
8:30Employment Cost Index
9:45Chicago PMI
10:30EIA Natural Gas Inventory

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

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…ES relinquishing prior sessions gains following the Fed’s Interest Rate Cut. Price is back to key support zone between 3035 – 3030. Violation and conversion of this zone to lower resistance opens door for deeper decline. Cycle Day 1 Low is marked at 3023.25.

*****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 = 3077.50       CD2 Range Low = 3008.00    CD2 Range Avg = 44.00

Scenario 1: IF Bulls hold bid above 3039, THEN initial upside potential targets 3046 – 3052 zone.

Scenario 2: IF Bears hold offer below 3039, THEN initial downside objective targets 3029 – 3023 zone.

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

HOD  ATR Range Projection: 3055.50; LOD ATR Range Projection: 3030.00; 3 Day Central Pivot: 3039.00; 3 Day Cycle Target: 3072.50; 10 Day Average True Range 22.00: VIX: 13.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…NQ relinquishing prior sessions gains following the Fed’s Interest Rate Cut. Price is back to key support zone between 8091 – 8081 zone.

CD2 Range High = 8232.00          CD2 Range Low = 7988.00          CD2 Range Avg = 150.00

Scenario 1: IF Bulls hold bid above 8088, THEN initial upside potential targets 8118 – 8138 zone.

Scenario 2: IF Bears hold offer below 8088, THEN initial downside objective targets 8070 – 8050 zone.

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

HOD  ATR Range Projection: 8168.00; LOD ATR Range Projection: 8053.00; 3 Day Central Pivot: 8088.00; 3 Day Cycle Target: 8181.00; 10 Day Average True Range: 86.50; 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