Trade Strategy 12.17.20

Markets

U.S. futures advance with stimulus hopes

Nasdaq futures gain 0.5%, S&P futures rise 0.2%, and Dow futures move up 0.5%. The Stoxx Europe 600 rises 0.4%

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
8:30 Housing Starts
8:30 Philly Fed Business Outlook
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

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

S&P 500

Prior Session was Cycle Day 2 (CD2): Textbook Taylor CD2 as price successfully held above 3880 – 82 key support zone. Range was 24.50 handles on 1.140K contracts exchanged.

 …Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price is trading above prior Value Zone (3688 – 3698) which is bullish structure, as well as exceeding this Cycle’s price objective (3707.25). Bulls have dominant control above prior range. As such there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3705, initially targets 3715 – 3720 zone.

2.) Price sustains an offer below 3705, initially targets 3695 – 3690 zone.

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

PVA High Edge = 3698       PVA Low Edge = 3688         Prior POC = 3691

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

HOD  ATR Range Projection: 3727; LOD ATR Range Projection: 3681; 3 Day Central Pivot: 3674; 3 Day Cycle Target: 3707.25; 10 Day Average True Range  35; VIX: 22

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is trading above prior value zone and fulfilling Cycle price objective (12750) during overnight activity. Prior Range was 133 handles on 2352k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12655       PVA Low Edge = 12590      Prior POC = 12617

Bull Scenario: IF Bulls sustain a bid above 12705, THEN initial upside estimate targets 12730 – 12750 zone.

Bear Scenario: IF Bears sustain an offer below 12705, THEN initial downside estimate targets 12690 – 12670 zone.

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

HOD  ATR Range Projection: 12860; LOD ATR Range Projection: 12592; 3 Day Central Pivot: 12555; 3 Day Cycle Target: 12750; 10 Day Average True Range: 159; VIX: 22

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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