Trade Strategy 12.4.17

Markets
 
It’s a strong beginning for the week after the U.S. Senate narrowly passed a major tax bill over the weekend. The dollar and Treasury yields are on the rise, while Dow futures are up by more than 200 points, along with big gains for other U.S. indices. The GOP still needs to overcome future obstacles for the Senate and the House to craft a joint bill, which will then be presented to President Trump. A deal is hoped to be completed by Christmas.
 
In Asia, Japan -0.5%. Hong Kong +0.2%. China -0.2%. India +0.1%
In Europe, at midday, London +0.4%. Paris +1.1%. Frankfurt +1.3%
Futures at 6:20, Dow +0.9%. S&P +0.6%. Nasdaq +0.5%. Crude +1% to $57.78. Gold -0.5% to $1276. Bitcoin +1.4% to $11332.. 
Ten-year Treasury Yield +4 bps to 2.4%
 
(Source: Seeking Alpha)

Economic Calendar

10:00 Factory Orders
12:30 PM TD Ameritrade IMX

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Price has vaulted in overnight trade to reach 2656 handle 3 Day Cycle Target. Bulls will need to keep bid above prior close (2642.75), with upper targets measuring 2671 – 2681 zone.

Nasdaq 100 (NQ)

NAZ has retraced 75% of its prior decline as price reached CD2 Penetration Levels between 6387 – 6393 zone. Conversion back below prior close (6344.75) would be a sign of weakness.

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2670.68; LOD ATR Range Projection: 2646.57; Cycle Day 1 Low: 2605.00 3 Day Central Pivot: 2633.50; 3 Day Cycle Target: 2656.80; 10 Day Average True Range: 16.67; VIX: 11.07

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: December 2017 (ESZ) Contract

*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.

Scenario 1: IF price holds above PC (2642.75), THEN upside range targets 2666.50, followed by 2671…2676…2681.

Scenario 2: IF price converts PC (2642.75) to lower resistance, THEN downside targets 2635.25 – 2631.75 3 Day Central Pivot Zone.

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