Trade Strategy 12.20.19

Markets

More record highs

Wall Street stocks rose to all-time highs on Thursday, with the S&P 500 index pushing past 3,200 for the first time, after Treasury Secretary Steven Mnuchin said the U.S. and China would sign their “phase one” trade agreement in early January. However, there wasn’t much movement from futures overnight, as investors begin winding down their books in the days leading up to the year-end holidays. Later in the session, we’ll get consumer spending figures, key inflation measures and the third estimate for third-quarter GDP.

In Asia, Japan -0.2%. Hong Kong +0.3%. China -0.4%. India flat.
In Europe, at midday, London +0.2%. Paris +0.6%. Frankfurt +0.6%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -0.6% to $60.83. Gold -0.2% to $1481. Bitcoin -0.3% to $.7130.
Ten-year Treasury Yield +3 bps to 1.94%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

8:30 GDP Q3
8:30 Corporate profits
10:00 Personal Income and Outlays
10:00 Consumer Sentiment
11:00 Kansas City Fed Mfg Survey
1:00 PM Baker-Hughes Rig Count

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

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price is holding gains made during prior Cycle Day 1 Session. Key initial price support now is marked at 3192. Price action is expected to be influenced by Quadruple Expiration for Options Contracts today.

Key Options Expiration Strike Prices: 3200…3225..3250

Looking forward >> Christmas falls mid-week, so expectation is for lower volumes as majority of Money Mangers / Traders will be taking extended holiday time-off. So best to pare back your trading activity and risk profiles.

*****ANNOUNCEMENT: PTG Trader Tool Box Indicator & Strategy Suite is now available for NinjaTrader 8 trading platform.

*****The 3 Day Cycle Spreadsheet which subscribers receive shortly after market close for next trading session contains all the projected range targets. Here is link to web page to learn more: https://polaristradinggroup.com/ptg-3-day-cycle/

CD2 Range High = 3233.00       CD2 Range Low = 3190.00    CD2 Range Avg = 30.00

Scenario 1: IF Bulls hold bid above 3212, THEN initial upside potential targets 3220 – 3227 zone.

Scenario 2: IF Bears hold offer below 3212, THEN initial downside objective targets 3206 – 3200 zone.

Range Projections and Key Levels (ES) March 2020 (H) Contract

HOD  ATR Range Projection: 3227.00; LOD ATR Range Projection: 3195.00; 3 Day Central Pivot: 3200.00; 3 Day Cycle Target: 3227.00; 10 Day Average True Range 18.45: VIX: 12.50

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price fulfilled 3 Day Cycle Target (8681) in prior trade session. Expectation for today is for some “back n fill” price action to absorb recent gains.

CD2 Range High = 8725.00          CD2 Range Low = 8625.00          CD2 Range Avg = 100.00

Scenario 1: IF Bulls hold bid above 8670, THEN initial upside potential targets 8685 – 8700 zone.

Scenario 2: IF Bears hold offer below 8670, THEN initial downside objective targets 8660 – 8650 zone.

Range Projections and Key Levels (NQ) March 2020 (H) Contract

HOD  ATR Range Projection: 8730.00; LOD ATR Range Projection: 8619.00; 3 Day Central Pivot: 8628.00; 3 Day Cycle Target: 8681.00; 10 Day Average True Range: 65.00; VIX: 12.50

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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