Trade Strategy 11.11.20

Markets

Tech climbed ahead of the broader market overnight, with Nasdaq futures rising 1.1% and the Dow/S&P 500 up 0.7%.

Source: SeekingAlpha.com

Economic Calendar

7:00 MBA Mortgage Applications

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

***New: PTG Trading Room Chat Log’s Link

S&P 500

***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication

Tuesday’s Session was Cycle Day 3 (CD3): Following an explosive start to the week as indexes hit all-time highs, price relinquished those gains and consolidated, finding buy response at prior week’s high zone between 3510 – 3520. Range was 56.25 handles on 2.126M contracts exchanged.

 …Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Normal for CD1 is a decline with the average measuring 3498. Three-fourths of the expected decline is in place as price closed with a firm bid in prior session. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3540, initially targets 3565 – 3575 zone.

2.) Price sustains an offer below 3540, initially targets 3510 – 3500 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3548       PVA Low Edge = 3530         Prior POC = 3540

Range Projections and Key Levels (ES) December 2020 (Z) Contract

HOD  ATR Range Projection: 3616; LOD ATR Range Projection: 3488; 3 Day Central Pivot: 3536; 3 Day Cycle Target: 3564; 10 Day Average True Range  86; VIX: 24

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price is trading higher and holding firm bid during overnight trade slightly above prior value zone. CD1 Average Decline has been fulfilled to 11603 and this cycle’s rally is underway. As such, there are two estimated scenarios to consider.

PVA High Edge = 11703       PVA Low Edge = 11585      Prior POC = 11631

Bull Scenario: IF Bulls sustain a bid above 11710, THEN initial upside estimate targets 11775 – 11815 zone.

Bear Scenario: IF Bears sustain an offer below 11710, THEN initial downside estimate targets 11670 – 11630 zone.

Range Projections and Key Levels (NQ) December 2020 (Z) Contract

HOD  ATR Range Projection: 11940; LOD ATR Range Projection: 11411; 3 Day Central Pivot: 11906; 3 Day Cycle Target: 11666; 10 Day Average True Range: 364; VIX: 24

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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