Trade Strategy 12.7.17

Markets
 
In Asia, Japan +1.5%. Hong Kong +0.3%. China -0.7%. India +1.1%
In Europe, at midday, London flat. Paris +0.1%. Frankfurt +0.2%
Futures at 6:20, Dow flat. S&P +0.1%. Nasdaq +0.6%. Crude +0.4% to $56.16. Gold -0.7% to $1257.60. Bitcoin +9.1% to $15058. 
Ten-year Treasury Yield +1 bps to 2.34%
 
(Source: Seeking Alpha)

Economic Calendar

7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
3:00 PM Consumer Credit
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…S&P 500 (ES) remains in down-swing despite finding an early low and rallying, only to stabilize throughout the session. Price has failed to recover above 3 Day Central Pivot Zone which has now shifted to Bear/Sell condition. Unless Bulls can squarely recover price above 2638 – 40 zone, expectation will be for further downside movement.

Nasdaq 100 (NQ)

Opening weakness reversed aggressively off deep extreme support 6240 handle recovering most of prior sessions losses. Volatility is extremely high in Nazland although Bulls have not been able to reverse the overall “sell the rally” mind-set. Bears need a decisive conversion below 6240 to force deeper downside move, while Bulls must recover 6340 to support. 100 handle trading range is our playground for now.

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2649.15; LOD ATR Range Projection: 2617.60; Cycle Day 1 Low: 2622.50 3 Day Central Pivot: 2636.25; 3 Day Cycle Target: 2648.00; 10 Day Average True Range: 18.70; VIX: 10.91

**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: Bulls need to convert 2636.25 Central Pivot to upper support to break the current downswing condition. IF successful, THEN next objective will be to convert 2640 handle.

Scenario 2: Bears have ball control below 2636.25 with their next objective to break CD1 Low (2622.50) to lower resistance. IF successful, THEN deeper downside may unfold targeting 2615 handle, followed by 2605 ATR deep extreme.

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