Trade Strategy 11.26.18

Markets
 
Stock index futures are pointing to major gains at the open, with the Dow up more than 300 points as crude prices rebound. Equities could get a further boost later this week if a trade breakthrough arises from the meeting between President Trump and Xi Jinping at the G20 summit in Argentina.
 
In Asia, Japan +0.7%. Hong Kong +1.7%. China -0.1%. India +1.1%
In Europe, at midday, London +0.9%. Paris +1.1%. Frankfurt +1.3%
Futures at 6:20, Dow +1.1%. S&P +1.2%. Nasdaq +1.7%. Crude +0.8% to $50.84. Gold +0.2%to $1225.80. Bitcoin +7% to $4022. 
Ten-year Treasury Yield +1 bps to 3.06%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Chicago Fed National Activity Index
10:30 Dallas Fed Manufacturing Survey
1:00 PM Results of $39B, 2-Year Note Auction

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

S&P 500

Today is Cycle Day 2 (CD2)…Price has rallied strongly during overnight session as Major Global Indexes posting +1% gains. Price has fulfilled 3 Day Cycle Target of 2662.50 and trading near upper edge of 10 Day Range Target of 2670.75.

CD2 Range High = 2669.50          CD2 Range Low = 2628.00         CD2 Range Avg = 38.00

Scenario 1: Since price is trading near or fulfilled upper targets, bulls will need to hold bid above 2655 on any pullback and IF successful Projected Balance Target (PBT) measures 2670 handle.

Scenario 2: IF price violates and converts 2655 to lower resistance and holds offer, THEN downside targets 2647.25 – 2644.75 STATX Zone.

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

HOD  ATR Range Projection: 2670.75; LOD ATR Range Projection: 2626.75; Cycle Day 1 Low: 2626.00; 3 Day Central Pivot: 2641.25; 3 Day Cycle Target: 2662.50; 10 Day Average True Range 39.25; VIX: 20.50

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has rallied strongly during overnight session as Major Global Indexes posting +1% gains. Price has fulfilled 3 Day Cycle Target of 6637.50 and trading near upper edge of 10 Day Range Target of 6672.00

CD2 Range High = 6676.00         CD2 Range Low = 6509.50          CD2 Range Avg = 146.00

Scenario 1: Since price is trading near or fulfilled upper targets, bulls will need to hold bid above 6595 on any pullback and IF successful targets 6655.50 CD2 Penetration Level.

Scenario 2: IF price violates and converts 6595 to lower resistance and holds offer, THEN downside targets 6559.75 – 6548.75 3 Day Central Pivot Zone.

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

HOD  ATR Range Projection: 6672.00; LOD ATR Range Projection: 6514.00; Cycle Day 1 Low: 6530.50; 3 Day Central Pivot: 6555.00; 3 Day Cycle Target: 6637.50; 10 Day Average True Range: 141.00; 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