Trade Strategy 2.5.20

Markets

Dow 29,000

Down for most of the night, U.S. stock futures are now indicating another big day of gains, with the DJIA pointing to an advance of 272 points at the open to retake the 29,000 level.

In Asia, Japan +1%. Hong Kong +0.4%. China +1.3%. India +0.9%.
In Europe, at midday, London +0.7%. Paris +0.8%. Frankfurt +1.1%.
Futures at 6:20, Dow +1%. S&P +1%. Nasdaq +1.1%. Crude +2.9% to $51.03. Gold -0.1% to $1554.60. Bitcoin +1.9% to $9384.
Ten-year Treasury Yield +2 bps to 1.62%

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar

8:15 ADP Jobs Report
8:30 International Trade
8:30 Treasury Refunding Quarterly Announcement
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 2 (CD2)…PTG Daily Trade Strategy (2.4.20) we wrote: “Price has extended this cycle’s rally reversing nearly the entire decline which pushed price down to extremes at end of prior week. Normal for Cycle Day 2 would be for some ‘back n fill’ activity with a continued upwards bias. Extended targets measure 3290 – 3295 zone.”

This leads us into today’s Cycle Day 3 (CD3). Positive 3-Day Cycle Target Statistic has been fulfilled. As such, this leaves us with a “wild-card” day for today. Bulls have clearly regained control, yet are vulnerable to a pullback below 3295 – 3290 zone. Clearing and converting prior high (3305.25) would reassert momentum targeting 3313 – 3315 zone. As of this writing we’ll mark 3290 as “key” Line-In-Sand (LIS).

https://stockcharts.com/articles/wyckoff/2015/06/jumping-the-creek.html

****We noted at the end of prior session in preparation for today’s was the expectation of a “wild-card” day in which a bullish scenario would be characterized as “Jumping the Creek”, which is a Wyckoff Concept. Well indeed price is set to gap strongly higher in-effect “jumping-the-creek”.

To learn more about Wyckoff Concepts, click on article link above.

ATR Range High = 3333.00       ATR Range Low = 3287.00         CD1 Range Avg = 25.00

Bull Scenario: IF Bulls hold bid above 3325, THEN initial upside targets 3331 – 3333 zone.

Bear Scenario: IF Bears hold offer below 3325, THEN initial downside targets 3314 – 3312 zone.

Range Projections and Key Levels (ES) March 2020 (H) Contract

HOD  ATR Range Projection: 3333.00; LOD ATR Range Projection: 3287.00; 3 Day Central Pivot: 3257.00; 3 Day Cycle Target: 3257.00; 10 Day Average True Range 44.50; VIX: 15.68

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price is set to strongly gap higher exceeding CD3 upper Penetration Target Zone between 9392 – 9400. ATR (10) Range Projection measures 9474.25.

ATR Range High = 9474.25           ATR Range Low = 9306.00          CD1 Range Avg = 94.00

Bull Scenario: IF Bulls hold bid above 9440, THEN initial upside targets 9462 – 9474 zone.

Bear Scenario: IF Bears hold offer below 9440, THEN initial downside targets 9400 – 9392 zone.

Range Projections and Key Levels (NQ) March 2020 (H) Contract

HOD  ATR Range Projection: 9474.25; LOD ATR Range Projection: 9306.25; 3 Day Central Pivot: 9140.75; 3 Day Cycle Target: 9110.75; 10 Day Average True Range: 156.00; VIX: 15.68

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