Trade Strategy 11.17.20

Markets

All-time highs

A minor pullback was seen overnight following a bumper session for U.S. stocks amid another set of upbeat results from Moderna’s (NASDAQ:MRNA) COVID-19 vaccine trials.

Dow and S&P 500 futures dipped 0.3%, while the Nasdaq rose 0.3% as Tesla (TSLA) soared on news that it would finally be added to the S&P 500 index.

Source: SeekingAlpha.com

Economic Calendar

8:30 Retail Sales
8:30 Import/Export Prices
8:55 Redbook Chain Store Sales
9:15 Industrial Production
10:00 Business Inventories
10:00 NAHB Housing Market Index

1:00 PM Fed’s Bostic Speech
1:25 PM Fed’s Daly Speech
2:00 PM Fed’s Williams Speech
2:35 PM Fed’s Daly Speech
2:35 PM Fed’s Bostic Speech
2:35 PM Fed’s Rosengren Speech
2:50 PM Fed’s Daly Speech
2:50 PM Fed’s Rosengren Speech
3:00 PM Fed’s Barkin Speech

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

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

S&P 500

Prior Session was Cycle Day 1 (CD1): Bullish price gap pushed price to cycle objectives between 3619 – 3627 zone where price found resistance, then flip-flopped throughout the remainder of the session. Range was 50.50 handles on 1.258M contracts exchanged.

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Normal for CD2 is for some ‘back n fill’ consolidation to absorb and balance recent price swings. Price is currently trading within prior value zone. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3608, initially targets 3618 – 3623 zone.

2.) Price sustains an offer below 3608, initially targets 3598 – 3587 zone.

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

PVA High Edge = 3620       PVA Low Edge = 3557         Prior POC = 3570

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

HOD  ATR Range Projection: 3620; LOD ATR Range Projection: 3605; 3 Day Central Pivot: 3575; 3 Day Cycle Target: 3519; 10 Day Average True Range  70; VIX: 23

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is trading within prior value zone during overnight activity. Prior Range was 213.25 handles on 467k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12018       PVA Low Edge = 11947      Prior POC = 11982

Bull Scenario: IF Bulls sustain a bid above 12036, THEN initial upside estimate targets 12050 – 12065 zone.

Bear Scenario: IF Bears sustain an offer below 12036, THEN initial downside estimate targets 12018 – 11992 zone.

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

HOD  ATR Range Projection: 12290; LOD ATR Range Projection: 11798; 3 Day Central Pivot: 11918; 3 Day Cycle Target: 12067; 10 Day Average True Range: 299; VIX: 23

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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