Trade Strategy 2.6.20

Markets

Fresh records on Wall Street are set to continue after China said it would halve tariffs on $75B of U.S. imports as part of its efforts to implement a recently signed ‘phase one’ trade deal. The announcement adds to hopes the global economy may be able to avoid a major shock from China’s rapidly spreading coronavirus, with DJIA futures pointing to opening gains of 115 points after soaring nearly 500 points on Wednesday. The march upward wasn’t limited to the U.S., with European indices flashing green following big gains during the overnight session in Asia.

In Asia, Japan +2.4%. Hong Kong +2.6%. China +1.7%. India +0.4%.
In Europe, at midday, London +0.2%. Paris +0.6%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.4%. S&P +0.3%. Nasdaq +0.4%. Crude +1.2% to $51.41. Gold +0.2% to $1565.80. Bitcoin +4.4% to $9648.
Ten-year Treasury Yield flat at 1.64%

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

Economic Calendar

8:30 Initial Jobless Claims
8:30 Productivity and Costs
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

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

S&P 500

Today begins a new Cycle Day 1 (CD1), Normal is for a decline with the Average Decline measuring 3812. Average Range recorded over 20 Cycles is 31.50 handles. Odds of Decline > 10 = 73%; Odds of Decline > 20 = 44%

CD1 Range High = 3357.00       CD1 Range Low = 3326.00         CD1 Range Avg = 31.50

Bull Scenario: IF Bulls hold bid above 3338, THEN initial upside targets 3347 – 3350 zone

Bear Scenario: IF Bears hold offer below 3338, THEN initial downside targets 3330 – 3326 zone.

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

HOD  ATR Range Projection: 3376.00; LOD ATR Range Projection: 3314.00; 3 Day Central Pivot: 3282.00; 3 Day Cycle Target: 3362.00; 10 Day Average True Range 43.70; VIX: 15.22

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 9366.00. Average Range for CD1 is 106.00 handles. Odds of decline > 20 handles = 75% Odds of decline > 25 = 67%

CD1 Range High = 9434.00           CD1 Range Low = 9401.00          CD1 Range Avg = 111.00

Bull Scenario: IF Bulls hold bid above 9435, THEN initial upside targets 9448 – 9463 zone.

Bear Scenario: IF Bears hold offer below 9435, THEN initial downside targets 9401 – 9388 zone.

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

HOD  ATR Range Projection: 9528.00; LOD ATR Range Projection: 9308.00; 3 Day Central Pivot: 9245.00; 3 Day Cycle Target: 9448.00; 10 Day Average True Range: 153.00; VIX: 15.22

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