Trade Strategy 12.1.20

Markets

Wall Street’s enthusiasm about vaccines helped drive historical performances for the averages in November. The S&P 500 (SP500) rose 10.9% for the month, its best November ever. The DJIA (DJI) gained 11.9% for its best month (at any point in the year) since 1987, and the Nasdaq (COMP) rose 11.8% for its best November since 2001.

Source: SeekingAlpha.com

Economic Calendar

8:55 Redbook Chain Store Sales
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending

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

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 2 (CD2): Price oscillated throughout the session in a normal Cycle Day 2, closing near high of day. Range was 59.75 handles on 1.613M contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price is trading higher during overnight trade notching new all-time highs as cycle price objectives have been fulfilled. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3652, initially targets 3663 – 3668 zone.

2.) Price sustains an offer below 3652, initially targets 3640 – 3635 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3625       PVA Low Edge = 3606         Prior POC = 3617

Range Projections and Key Levels (ES) December 2020 (Z) Contract

HOD  ATR Range Projection: 3629; LOD ATR Range Projection: 3627; 3 Day Central Pivot: 3627; 3 Day Cycle Target: 3687; 10 Day Average True Range  37; VIX: 20

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is trading above prior day value zone during overnight activity. Prior Range was 251 handles on 489k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 11898       PVA Low Edge = 11766      Prior POC = 11872

Bull Scenario: IF Bulls sustain a bid above 12337, THEN initial upside estimate targets 12388 – 12405 zone.

Bear Scenario: IF Bears sustain an offer below 12337, THEN initial downside estimate targets 12326 – 12312 zone.

Range Projections and Key Levels (NQ) December 2020 (Z) Contract

HOD  ATR Range Projection: 12459; LOD ATR Range Projection: 12255; 3 Day Central Pivot: 12218; 3 Day Cycle Target: 12228; 10 Day Average True Range: 147; VIX: 20

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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