Trade Strategy 12.31.18

Markets
 
U.S. stock index futures are rallying ahead of the final trading session of the year amid optimism surrounding talks between the world’s two largest economies. President Trump said he had a “very good call” on trade with China’s Xi Jinping on Saturday, claiming that “big progress” was being made on this front, while the latter said both sides wanted “stable progress.”
 
In Asia, Japan closed. Hong Kong closed. China closed. India flat. 
In Europe, at midday, London -0.1%. Paris +0.9%. Frankfurt closed. 
Futures at 6:20, Dow +0.9%. S&P +0.8%. Nasdaq +0.9%. Crude +1.1% to $45.82. Gold +0.2%to $1286.10. Bitcoin +0.1% to $3873. 
Ten-year Treasury Yield steady at 2.74%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

10:30 Dallas Fed Manufacturing Survey

***New: PTG Trading Room Chat Log’s Link Click this link to view:

S&P 500

Today is Cycle Day 2 (CD2)…Price is higher overnight for the last trading session of 2018. Expectation is for lighter than normal volumes as most traders are on holiday and not expected back in full force until January 7th. Key Pivot = 2495.00

CD2 Range High = 2519.00          CD2 Range Low = 2488.00         CD2 Range Avg = 62.00

Scenario 1: IF price holds bid above 2495, THEN upside potential measures 2523.50 – 2532 zone.

Scenario 2: IF price holds offer below 2495, THEN downside potential measures 2472.75 – 2459 zone.

Range Projections and Key Levels (ES) March 19 (H) Contract

HOD  ATR Range Projection: 2573.75; LOD ATR Range Projection: 2434.50; Cycle Day 1 Low: 2472.75; 3 Day Central Pivot: 2459.00; 3 Day Cycle Target: 2527.50; 10 Day Average True Range 78.50; VIX: 27.00

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is higher overnight for the last trading session of 2018. Expectation is for lighter than normal volumes as most traders are on holiday and not expected back in full force until January 7th. Key Pivot = 6314.00

CD2 Range High = 6366.50         CD2 Range Low = 6317.00          CD2 Range Avg = 202.00

Scenario 1: IF price holds bid above 6314, THEN upside potential measures 6393.75 – 6433.25 zone.

Scenario 2: IF price holds offer below 6314, THEN downside potential measures 6260.50 –  6215.00 zone.

Range Projections and Key Levels (ES) March 19 (H) Contract

HOD  ATR Range Projection: 6543.00; LOD ATR Range Projection: 6141.00; Cycle Day 1 Low: 6243.75; 3 Day Central Pivot: 6227.25; 3 Day Cycle Target: 6433.75; 10 Day Average True Range: 231.50; VIX: 27.00

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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