Markets
Dow futures rose 0.7% vs. the 0.4% advance of the Nasdaq.
Source: SeekingAlpha.com
Economic Calendar
8:30 Chicago Fed National Activity Index
9:45 PMI Composite Flash
11:30 Results of $56B, 2-Year Note Auction
1:00 PM Results of $57B, 5-Year Note Auction
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Price oscillated between extreme high and low range throughout the session with end of week sell down. Overall profile was fairly balanced for a Cycle Day 2. Range was 38.50 handles on 1.046M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is trading higher during overnight trade near prior session’s high (3582.75) Cycle price objectives have been fulfilled. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3575, initially targets 3585 – 3590 zone.
2.) Price sustains an offer below 3575, initially targets 3565 – 3560 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3576 PVA Low Edge = 3563 Prior POC = 3569
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3600; LOD ATR Range Projection: 3526; 3 Day Central Pivot: 3568; 3 Day Cycle Target: 3575; 10 Day Average True Range 54; VIX: 23
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading below prior day value zone during overnight activity. Prior Range was 119 handles on 340k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 11898 PVA Low Edge = 11766 Prior POC = 11872
Bull Scenario: IF Bulls sustain a bid above 11935, THEN initial upside estimate targets 11965 – 11980 zone.
Bear Scenario: IF Bears sustain an offer below 11935, THEN initial downside estimate targets 11920 – 11915 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12096; LOD ATR Range Projection: 11775; 3 Day Central Pivot: 11928; 3 Day Cycle Target: 11895; 10 Day Average True Range: 205; 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.
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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