Trade Strategy 2.20.18

Markets
 
In Asia, Japan -1%. Hong Kong -0.8%. China closed. India -0.2%
In Europe, at midday, London -0.3%. Paris +0.1%. Frankfurt -0.1%
Futures at 6:20, Dow -0.8%. S&P -0.8%. Nasdaq -0.8%. Crude +0.5% to $61.83. Gold -1.1% to $1341. Bitcoin +2.1% to $11396. 
Ten-year Treasury Yield +3 bps to 2.91%
 
(Source: Seeking Alpha)

Economic Calendar

1:00 PM Results of $28B, 2-Year Note Auction

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Prior session was CD1 and price fulfilled average decline projection. Price is sliding further in overnight trade and currently has found a buy response at 2710 3 Day Central Pivot.

Scenario 1: Bulls will need to recover above CD1 Low (2719.50 and then convert 2730 to upper support to shift the current downswing. Upside targets 2743 if accomplished.

Scenario 2: Bears have ball control below 2730 and an opening to press lower to retest prior low zone. Lower targets measures 2708 – 2706 zone, followed by 2700 – 2693 zone.

HOD  ATR Range Projection: 2755.87; LOD ATR Range Projection: 2688.13; Cycle Day 1 Low: 2719.50; 3 Day Central Pivot: 2711.00; 3 Day Cycle Target: 2765.00; 10 Day Average True Range 46.87; VIX: 20.89

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Prior session was CD1 and price fulfilled average decline projection (6761.44). Price is sliding further in overnight trade and currently has found a buy response at 6727 3 Day Central Pivot.

Scenario 1: Bulls will need to recover above CD1 Low (6758.25) and then convert 6796.00 to upper support to shift the current downswing. Upside targets 6808 – 6819 zone if accomplished.

Scenario 2: Bears have ball control below 6785.00 and an opening to press lower to retest prior low zone. Lower targets measures 6727 –  6711 zone, followed by 6687.25  – 6670.00 zone.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6856.91; LOD ATR Range Projection: 6662.84; Cycle Day 1 Low: 6758.25; 3 Day Central Pivot: 6727.50; 3 Day Cycle Target: 6881.25; 10 Day Average True Range: 133.66; VIX: 20.89

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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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