Trade Strategy 2.22.18

Markets
 
U.S. stock index futures are looking at a positive open after a late drop in U.S. equities yesterday, stoked by the minutes of the Fed’s last policy meeting and fresh concerns about higher interest rates.
 
In Asia, Japan -1.1%. Hong Kong -1.5%. China +2.2%. India -0.1%
In Europe, at midday, London -1%. Paris -0.5%. Frankfurt -0.8%
Futures at 6:20, Dow +0.1%. S&P +0.3%. Nasdaq +0.1%. Crude -0.4% to $61.44. Gold -0.6% to $1324.20. Bitcoin -2% to $10251. 
Ten-year Treasury Yield flat at 2.93%
 
(Source: Seeking Alpha)

Economic Calendar

8:30Initial Jobless Claims
9:45Bloomberg Consumer Comfort Index
10:00Leading Indicators
10:30EIA Natural Gas Inventory
11:00EIA Petroleum Inventories
11:00Kansas City Fed Mfg Survey
1:00 PMResults of $29B, 7-Year Note Auction
4:30 PMMoney Supply
4:30 PMFed Balance Sheet

S&P 500 (ES)

Today is Cycle Day 1 (CD1)…Yesterday was CD3. Markets rallied to their PTG/TTT levels and some even reached Violation levels or even Violation levels plus their Standard Deviation. Then the decline started and the average decline is in place by end of RTH Session.

Price pushed lower in overnight trade reaching (2682) CD1 Violation Levels at which time the rally has begun, currently recovering back to 2707 handle.

Scenario 1: IF converts PC (2698.50) to support, THEN rally has potential to push back targeting 2710 handle.

Scenario 2: IF price converts PC (2698.50) to resistance, THEN retest of 2882 CD1 Violation Level comes into play.

HOD  ATR Range Projection: 2726.77; LOD ATR Range Projection: 2662.73; Cycle Day 1 Low: 2719.50; 3 Day Central Pivot: 2721.50; 3 Day Cycle Target: 2765.00; 10 Day Average True Range 44.77; VIX: 19.98

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Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Yesterday was CD3. Markets rallied to their PTG/TTT levels and some even reached Violation levels or even Violation levels plus their Standard Deviation. Then the decline started and the average decline is in place by end of RTH Session.

Price pushed lower in overnight trade reaching (6705.36) CD1 Violation Levels at which time the rally has begun, currently recovering back to 6772.00 handle.

Scenario 1: IF price converts PL (6741.25) to support, THEN recovery rally has potential to extend to 6775 – 85 zone.

Scenario 2: IF price converts PC (6755.00) to resistance, THEN retest of 6716 – 6701 CD1 Violation Zone comes into play.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6821.14; LOD ATR Range Projection: 6646.61; Cycle Day 1 Low: 6758.25; 3 Day Central Pivot: 6788.75; 3 Day Cycle Target: 6881.25; 10 Day Average True Range: 126.39; VIX: 19.98

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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