Trade Strategy 11.5.19

Markets

More highs are in store for the three major U.S. stock indexes as reports suggest the Trump administration is weighing whether to drop existing tariffs on $112B of Chinese imports (which were introduced at a 15% rate on Sept. 1). The Dow, S&P 500 and Nasdaq are ahead by 0.4% as the concession is seen as pausing the U.S.-China trade war. “Phase One” of the pact would include Chinese purchases of American farm goods, rules to deter currency manipulation and some provisions to protect intellectual property and open up Chinese industries to U.S. firms.

In Asia, Japan +1.8%. Hong Kong +0.5%. China +0.5%. India -0.1%.
In Europe, at midday, London +0.3%. Paris +0.2%. Frankfurt flat.
Futures at 6:20, Dow +0.4%. S&P +0.4%. Nasdaq +0.4%. Crude +0.7% to $56.93. Gold -0.3% to $1506.80. Bitcoin +0.4% to $9281.
Ten-year Treasury Yield +3 bps tp 1.82%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

9:45PMI Services Index
10:00ISM Non-Manufacturing Index
10:00Job Openings and Labor Turnover Survey
12:40 PMFed’s Kaplan Speech
1:00 PMResults of $38B, 3-Year Note Auction

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

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Opening gap higher in prior session held the session’s Line-In-Sand (3076) and further building on those gains during overnight trade. Today’s upside targets range between 3090 – 3100 zone. Cycle Target measures 3110 handle. Key Support remains 3076 handle.

*****ANNOUNCEMENT: PTG Trader Tool Box Indicator & Strategy Suite is now available for NinjaTrader 8 trading platform.

*****The 3 Day Cycle Spreadsheet which subscribers receive shortly after market close for next trading session contains all the projected range targets. Here is link to web page to learn more: http://polaristradinggroup.com/ptg-3-day-cycle/

CD2 Range High = 3116.00       CD2 Range Low = 3043.00    CD2 Range Avg = 42.00

Scenario 1: IF Bulls hold bid above 3080, THEN initial upside potential targets 3090 – 3093 zone.

Scenario 2: IF Bears hold offer below 3080, THEN initial downside objective targets 3076 – 3070 zone.

Range Projections and Key Levels (ES) December 2019 (Z) Contract

HOD  ATR Range Projection: 3096.75; LOD ATR Range Projection: 3063.00; 3 Day Central Pivot: 3055.00; 3 Day Cycle Target: 3110.00; 10 Day Average True Range 22.75: VIX: 13.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…NQ holding bid above prior close (8218.00) and building on recent gains during overnight session notching 30 additional handles to 8248. Break and conversion below 8200 would stop the current uptrend structure.

CD2 Range High = 8355.00          CD2 Range Low = 81.03.00          CD2 Range Avg = 144.00

Scenario 1: IF Bulls hold bid above 8233, THEN initial upside potential targets 8248 – 8258 zone.

Scenario 2: IF Bears hold offer below 8233, THEN initial downside objective targets 8218 – 8200 zone.

Range Projections and Key Levels (NQ) December 2019 (Z) Contract

HOD  ATR Range Projection: 8290.00; LOD ATR Range Projection: 8168.00; 3 Day Central Pivot: 8145.00; 3 Day Cycle Target: 8112.00; 10 Day Average True Range: 79.50; VIX: 13.00

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