Trade Strategy 11.29.18

Markets
 
U.S. stock index futures are pulling back after a stellar session on Wednesday, when the DJIA closed up over 600 points following a dovish speech by Jerome Powell. He said the Fed’s benchmark interest rate was “just below” neutral, marking a step away from comments made in recent months. Also on deck for today is personal income and spending data for October, as well as the release of minutes from the last FOMC meeting.
 
In Asia, Japan +0.8%. Hong Kong -0.9%. China -1.3%. India +1.3%
In Europe, at midday, London +0.4%. Paris +0.5%. Frankfurt +0.1%
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.6%. Crude -1% to $49.79. Gold +0.6% to $1231.20. Bitcoin +3.8% to $4165. 
Ten-year Treasury Yield -3 bps to 3.01%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Initial Jobless Claims
8:30 Personal Income and Outlays
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
2:00 PM Fed’s Mester Speech
2:00 PM Fed’s Evans Speech
2:00 PM FOMC minutes
1:00 PM Fed’s Kaplan Speech
3:00 Farm Prices
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

S&P 500

Today is Cycle Day 2 (CD2)…Price is pulling back from prior session extreme highs with expectation for “Market After Trend Day” (MATD). Consolidation/Oscillations at higher price levels with a continued bullish-bias above 2722 handle.

CD2 Range High = 2752.00          CD2 Range Low = 2702.00         CD2 Range Avg = 39.50

Scenario 1: IF price holds bid above 2728, THEN upside initially targets retest of 2745 prior high. Conversion of this level expands targets to 2752 – 2755 zone.

Scenario 2: IF price holds offer below 2728, THEN initial downside targets 2722 – 2719 Central Pivot. Conversion of this zone expands downside targets to 2713 – 2708 zone.

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

HOD  ATR Range Projection: 2771.25; LOD ATR Range Projection: 2700.00; Cycle Day 1 Low: 2681.00; 3 Day Central Pivot: 2685.00; 3 Day Cycle Target: 2720.00; 10 Day Average True Range 42.50; VIX: 19.16

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is pulling back for prior session extreme highs with expectation for “Market After Trend Day” (MATD). Consolidation/Oscillations at higher price levels with a continued bullish-bias above 6862 handle.

CD2 Range High = 6920.00         CD2 Range Low = 6864.00          CD2 Range Avg = 153.00

Scenario 1: IF price holds bid above 6862, THEN upside initially targets retest of 6923.50 prior high. Conversion of this level expands targets to 6944.00 – 6956.00 zone.

Scenario 2: IF price holds offer below 6862, THEN initial downside targets 6850 – 6845 Central Pivot. Conversion of this zone expands downside targets to 6817 – 6800 zone.

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

HOD  ATR Range Projection: 7018.00; LOD ATR Range Projection: 6766.00; Cycle Day 1 Low: 6711.50; 3 Day Central Pivot: 6719.00; 3 Day Cycle Target: 6864.00; 10 Day Average True Range: 151.00; VIX: 19.16

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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