Trade Strategy 11.7.18

Markets
 
U.S. stock index futures are pointing to a strong opening on Wall Street after the baseline consensus forecast for U.S. midterm elections proved correct as Democrats won control of the House, while the GOP hung on to the Senate. History has shown that mixed party control is generally the best combination for equity markets, while the highest-growth stocks can keep putting up terrific numbers even during an economic slowdown.
 
In Asia, Japan -0.1%. Hong Kong +0.1%. China -0.7%. India +0.1%
In Europe, at midday, London +1.2%. Paris +1.3%. Frankfurt +0.9%
Futures at 6:20, Dow +0.7%. S&P +0.9%. Nasdaq +1.2%. Crude +1% to $62.85. Gold +0.7% to $1235.40. Bitcoin +0.9% to $6521. 
Ten-year Treasury Yield -3 bps 3.18%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

FOMC meeting begins
7:00 MBA Mortgage Applications
10:30 EIA Petroleum Inventories
1:00 PM Results of $19B, 30-Year Note Auction
3:00 PM Consumer Credit

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

S&P 500

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2730.00. Average Range for CD1 is 31.50 handles. Odds of decline > 10 handles = 72% Odds of decline > 20 = 42%

CD1 Range High = 2776.25       CD1 Range Low = 2755.50         CD1 Range Avg = 31.50 

Scenario 1: IF price clears and converts PH (2761.00), THEN upside targets 2776 – 2778 CD1 Range High + 3 Day Cycle Target. (Both Fulfilled in overnight trade)

Scenario 2: IF price violates and converts 2776 to resistance, THEN downside retracement measures 2766 – 2763 zone.

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

HOD  ATR Range Projection: 2791.00; LOD ATR Range Projection: 2740.75; 3 Day Central Pivot: 2737.00; 3 Day Cycle Target: 2776.00; 10 Day Average True Range 46.00; VIX: 17.38

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Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 6919.00. Average Range for CD1 is 123.50 handles. Odds of decline > 20 handles = 73% Odds of decline > 25 = 64%

CD1 Range High = 7095.00          CD1 Range Low = 6998.75          CD1 Range Avg = 123.50

Scenario 1: IF price clears and converts PH (7034.75), THEN upside targets 7095 –  7104.50 CD1 Range High + 3 Day Cycle Target. (Both Fulfilled in overnight trade)

Scenario 2: IF price violates and converts 7023 to resistance, THEN downside retracement measures 7000 – 6975 zone.

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

HOD  ATR Range Projection: 7148.00; LOD ATR Range Projection: 6945.50; 3 Day Central Pivot: 6977.50; 3 Day Cycle Target: 7104.50; 10 Day Average True Range: 176.50; VIX: 17.38

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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