Trade Strategy 12.11.20

Markets

Futures fall back

U.S. stock index futures have turned around over the last few hours, pointing to a 1% decline at the open, as sentiment followed European equities into the red amid talks about a disruptive Brexit.

Source: SeekingAlpha.com

Economic Calendar

8:30 Producer Price Index
10:00 Consumer Sentiment
12:40 PM Fed’s Quarles Speech
1:00 PM Baker-Hughes Rig Count

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

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

S&P 500

Prior Session was Cycle Day 1 (CD1): Normal for a CD1 is for a decline, which did happen this cycle, placing CD1 Low at 3636 which happened first. Reactionary bounce /rally followed, but fizzled at 3678, which was half-back Prior Value Area resistance. Range was 37.25 handles on 1.280M contracts exchanged.

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price declined during overnight trade testing the CD1 Low (3636), rallying off deep D-Level Money Box Zone (3621 – 3631). As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3636, initially targets 3645 – 3655 zone.

2.) Price sustains an offer below 3636, initially targets 3625 – 3620 zone.

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

PVA High Edge = 3675       PVA Low Edge = 3664         Prior POC = 3670

Range Projections and Key Levels (ES) March 2021 (H) Contract

HOD  ATR Range Projection: 3674; LOD ATR Range Projection: 3614; 3 Day Central Pivot: 3672; 3 Day Cycle Target: 3668; 10 Day Average True Range 53; VIX: 24

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is currently trading within prior value zone as price declined during overnight trade. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12433       PVA Low Edge = 12330      Prior POC = 12395

Bull Scenario: IF Bulls sustain a bid above 12295, THEN initial upside estimate targets 12325 – 12350 zone.

Bear Scenario: IF Bears sustain an offer below 12295, THEN initial downside estimate targets 12260 – 12220 zone.

Range Projections and Key Levels (NQ) March 2021 (H) Contract

HOD  ATR Range Projection: 12482; LOD ATR Range Projection: 12193; 3 Day Central Pivot: 12465; 3 Day Cycle Target: 12477; 10 Day Average True Range: 220; VIX: 24

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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