Trade Strategy 11.1.18

Markets
 
It looks like another strong open for U.S. stock index futures as traders gear up for an action-packed November, with an upcoming G-20 summit, midterm elections, the latest jobs report and a Fed meeting on monetary policy. U.S. stocks rebounded strongly for a second day on Wednesday, as investors scooped up beaten-down technology and internet favorites as strong corporate results lifted sentiment.
 
Apple is expected to report a rise in fourth-quarter revenue and profit after the bell today, helped by demand for its pricey iPhones. Some other things to watch are Services growth (App Store, Apple Music, iCloud Storage and Apple Pay) and Other Products (Apple Watch, Apple TV and HomePods). Even with October’s tech pullback, Apple (NASDAQ:AAPL) shares are still up 27% YTD, and trends seem to be in the company’s favor heading into its busiest time of the year.
 
In Asia, Japan -1%. Hong Kong +1.8%. China +0.1%. India flat. 
In Europe, at midday, London +0.3%. Paris +0.5%. Frankfurt +1%
Futures at 6:20, Dow +0.5%. S&P +0.4%. Nasdaq +0.4%. Crude -0.7% to $64.84. Gold +0.9% to $1225.70. Bitcoin flat $6321. 
Ten-year Treasury Yield flat at 3.16%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

S&P 500

Today is Cycle Day 3 (CD3)…Price is consolidating its recent rally above 2705 Key Support with an upward bias. Expectation is for some lateral back n fill action with potential to expand higher targeting upwards to 2750 handle.

CD3 Range High = 2741.00          CD3 Range Low = 2704.50          CD3 Range Avg = 35.50 

Scenario 1: IF price holds bid above 2705, THEN upside initially targets 2728 – 2730 zone. IF this zone converts to upper support, THEN further upside targets 2740 – 2750 zone.

Scenario 2: IF price holds offer below 2705, THEN downside targets 2691.25 CD3 Range Low Average.

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

HOD  ATR Range Projection: 2768.50; LOD ATR Range Projection: 2664.25; Cycle Day 1 Low: 2633.25; 3 Day Central Pivot: 2676.50; 3 Day Cycle Target: 2686.00; 10 Day Average True Range 63.00; VIX: 20.50

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Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price is consolidating its recent rally above 6950 Key Support with an upward bias. Expectation is for some lateral back n fill action with potential to expand higher targeting upwards to 7060 handle.

CD3 Range High = 7187.50         CD3 Range Low = 6779.00          CD3 Range Avg = 136.00

Scenario 1: IF price holds bid above 6950, THEN upside initially targets 7004 CD3 Range High Average. IF this level converts to upper support, THEN further upside targets 7060 – -7086 zone.

Scenario 2: IF price holds offer below 6950, THEN downside targets 6880 CD3 Range Low Average.

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

HOD  ATR Range Projection: 7187.50; LOD ATR Range Projection: 6779.00; Cycle Day 1 Low: 6951.00; 3 Day Central Pivot: 6829.25; 3 Day Cycle Target: 6948.00; 10 Day Average True Range: 236.50; VIX: 20.50

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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