Trade Strategy 11.8.18

Markets
 
The Fed is likely to leave rates unchanged this afternoon as it announces its decision following a two-day policy meeting. U.S. stock index futures are still giving back some of yesterday’s gains as traders get nervous about upcoming tightening in December. Recent reports showing strong job and economic growth give the FOMC little reason to materially change its statement, while recent stock weakness doesn’t appear large enough to warrant extra attention from the central ban
 
In Asia, Japan +1.8%. Hong Kong +0.3%. China -0.2%. India closed. 
In Europe, at midday, London +0.3%. Paris -0.1%. Frankfurt -0.3%
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.6%. Crude +0.2% to $61.80. Gold -0.4% to $1223.60. Bitcoin -0.5% to $6486. 
Ten-year Treasury Yield +1 bps to 3.22%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
2:00 PM FOMC Announcement
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 during overnight trade following strong up move in prior session. Expectation is for some “back and fill” consolidation in a “Market After Trend Day” (a.k.a. – MATD) First line of possible renewed buy response near 2800, then 2795 levels.

CD2 Range High = 2824.50          CD2 Range Low = 2795.00         CD2 Range Avg = 35.50

Scenario 1: IF price holds bid above 2800, THEN upside targets 2810 – 15 zone.

Scenario 2: IF price holds offer below 2800, THEN downside targets 2795 – 2790 zone.

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

HOD  ATR Range Projection: 2850.50; LOD ATR Range Projection: 2769.25; Cycle Day 1 Low: 2744.75; 3 Day Central Pivot: 2758.25; 3 Day Cycle Target: 2778.50; 10 Day Average True Range 49.00; VIX: 16.50

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is pulling back during overnight trade following strong up move in prior session. Expectation is for some “back and fill” consolidation in a “Market After Trend Day” (a.k.a. – MATD) First line of possible renewed buy response near 7175.00, then 7160.00 levels.

CD2 Range High = 7215.50         CD2 Range Low = 7177.50          CD2 Range Avg = 139.50

Scenario 1: IF price holds bid above 7160, THEN upside targets 7190 – 7210 zone.

Scenario 2: IF price holds offer below 7160, THEN downside targets 7150 – 7140 zone.

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

HOD  ATR Range Projection: 7346.00; LOD ATR Range Projection: 7046.50; Cycle Day 1 Low: 6992.50; 3 Day Central Pivot: 7020.50; 3 Day Cycle Target: 7125.50; 10 Day Average True Range: 184.00; VIX: 16.50

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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


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