Trade Strategy 11.5.18

Markets
 
U.S. stock index futures are hugging the flatline as investors debate which way to turn ahead of tomorrow’s U.S. congressional midterm elections. There is also uncertainty surrounding monetary policy as the Fed prepares to meet Wednesday and Thursday. Tighter U.S. monetary policy may be discussed amid strong economic data, although President Trump and others have taken aim at the Fed for its hawkish agenda.
 
In Asia, Japan -1.6%. Hong Kong -2.1%. China -0.4%. India -0.2%
In Europe, at midday, London +0.3%. Paris +0.2%. Frankfurt +0.3%
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.1%. Crude -0.6% to $62.78. Gold flat at $1233.30. Bitcoin -0.4% to $6412. 
Ten-year Treasury Yield flat at 3.2%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Fed’s Williams Speech
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
12:30 PM TD Ameritrade IMX
1:00 PM Results of $37B, 3-Year Note Auction
7:00 PM Fed’s Kaplan Speech

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

S&P 500

Today is Cycle Day 2 (CD2)…Markets are relatively quiet with an upside bias during overnight trade. Expectation will be for more of same ahead of key Mid-Term Elections on Tuesday. Volatility should remain elevated with possible spikes, so be prepared and manage risk accordingly. Three-Day Cycle Target Zone marked between 2726.50 – 2731 zone.

CD2 Range High = 2748.00          CD2 Range Low = 2693.50         CD2 Range Avg = 35.25

Scenario 1: IF price holds bid above 2722, THEN upside targets 2729.50 – 2733.00 3 Day Cycle Targets.

Scenario 2: IF price holds offer below 2722, THEN downside targets 2705 – 2700 CD1 Low Zone.

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

HOD  ATR Range Projection: 2770.50; LOD ATR Range Projection: 2671.75; Cycle Day 1 Low: 2699.50; 3 Day Central Pivot: 2622.00; 3 Day Cycle Target: 2731.00; 10 Day Average True Range 57.50; VIX: 20.00

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Markets are relatively quiet with an upside bias during overnight trade. Expectation will be for more of same ahead of key Mid-Term Elections on Tuesday. Volatility should remain elevated with possible spikes, so be prepared and manage risk accordingly. Three-Day Cycle Target Zone marked between 6975.63 – 7041.50 zone.

CD2 Range High = 7082.50         CD2 Range Low = 6860.50          CD2 Range Avg = 138.00

Scenario 1: IF price holds bid above 6970, THEN upside targets 7010 – 7027 Central Pivot Zone.

Scenario 2: IF price holds offer below 6970, THEN downside targets 6945 – 6920 zone.

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

HOD  ATR Range Projection: 7157.25; LOD ATR Range Projection: 6786.00; Cycle Day 1 Low: 6911.25; 3 Day Central Pivot: 6988.00; 3 Day Cycle Target: 6975.50; 10 Day Average True Range: 213.00; VIX: 20.00

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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