Trade Strategy 2.2.18

Markets

In Asia, Japan -0.90%. Hong Kong -0.12%. China +0.44%. India -2.33%
In Europe, at midday, London -0.26%. Paris -1.12%. Frankfurt -0.94%
Futures at 6:20, Dow -0.98%. S&P -0.67%. Nasdaq -0.37%. Crude +0.08%to $65.85. Gold -0.02% to $1,347.60. 
Ten-year Treasury Yield+2 bps to 2.79%

Corporate Earnings Reports

Apple (AAPL+2% AH on Q1 earnings beat and plans to reduce net debt. 
Alphabet (NASDAQ:GOOG-3% AH on Q4 earnings miss, higher TAC. 
Amazon (NASDAQ:AMZN+5% PM on Q4 earnings beat, AWS lift.

(Source: Seeking Alpha)

Economic Calendar

8:30 Non-farm payrolls
10:00 Consumer Sentiment
10:00 Factory Orders
1:00 PM Baker-Hughes Rig Count

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Prior session saw price “run-the-range”…Plus/Minus 25 handles before settling near VWAP. Anticipation is for continue choppy trade action with recent cycle boundaries as bulls/bears search for balanced value.

Scenario 1: IF price converts PC (2823.50), THEN upside targets 2828, followed by 2831.75.

Scenario 2: Price has violated CD1 Low (2823.50) and has reached lower violation level of 2798. Further weakness below this level targets 2790 handle.

HOD  ATR Range Projection: 2822.00; LOD ATR Range Projection: 2805.95; Cycle Day 1 Low: 2823.50; 3 Day Central Pivot: 2827.75; 3 Day Cycle Target: 2841.29; 10 Day Average True Range: 25.08; VIX: 14.61

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Violation of CD1 Low (6884.75) in overnight trade has pushed price lower below 6860 average Violation Level. Average True Range has elevated to 78.51 handles as price volatility from earnings reports is dominating this future’s landscape.

Scenario 1: Bulls need to hold 6850 handle from further selling and recover above 6885 handle to stem additional losses. IF successful, THEN upside measures 6918 – 33 zone.

Scenario 2: Violation below 6850 opens trap door targeting 6826 max violation level and statistical standard deviation level of 6807.50.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6923.00; LOD ATR Range Projection: 6884.50; Cycle Day 1 Low: 6884.75; 3 Day Central Pivot: 6944.25; 3 Day Cycle Target: 6973.75; 10 Day Average True Range: 78.51; VIX: 14.61

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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


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