Trade Strategy 2.7.18

Markets

In Asia, Japan +0.2%. Hong Kong -0.9%. China -1.8%. India -0.3%
In Europe, at midday, London +0.4%. Paris +0.8%. Frankfurt +0.7%
Futures at 6:20, Dow -1%. S&P -1%. Nasdaq -1%. Crude -0.2% to $63.24. Gold +0.1% to $1330.80 Bitcoin +7.5% to $8277. 
Ten-year Treasury Yield flat at 2.77%

(Source: Seeking Alpha)

Economic Calendar

6:00 Fed’s Kaplan speech
7:00 MBA Mortgage Applications
10:30 EIA Petroleum Inventories
11:15 Fed’s Evans: Monetary Policy
1:00 PM Results of $24B, 10-Year Note Auction
3:00 PM Consumer Credit

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Partial recovery of previous decline as relief rally took some of the selling pressure off. Volatility is expected to remain elevated but below spiked levels near 50. Bulls still need to recover broken 50 day sma (2725) otherwise additional selling may reappear in coming days to retest Cycle Day 1 Low (2529.00).

Scenario 1: Bulls will need to hold above 2640 handle and push to convert 2700 to upper support. IF successful, THEN 2710 – 2720 targeted range high zone.

Scenario 2: Below 2640 Bears regain control which would then target 2620 – 2615 zone with range extremes measuring 2600.

HOD  ATR Range Projection: 2720.82; LOD ATR Range Projection: 2637.18; Cycle Day 1 Low: 2529.00; 3 Day Central Pivot: 2693.00; 3 Day Cycle Target: 2735.00; 10 Day Average True Range 98.06 ; VIX: 29.24

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Cycle relief rally targets 6646 which is where price is currently trading in globex session. Further price strength above 6678 is need to continue the recovery and repair process. Critical zone for Bulls to defend is 6500 – 6525.

Scenario 1: IF price clears and converts 6678, THEN upside targets 6695 – 6717 zone.

Scenario 2: IF price violates and converts 6600 to lower resistance, THEN initial downside targets 6525. Conversion of this level opens door to deeper retracement measuring 6500 – 6450 zone.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6726.29; LOD ATR Range Projection: 6510.96; Cycle Day 1 Low: 6300.00; 3 Day Central Pivot: 6642.50; 3 Day Cycle Target: 6726.00; 10 Day Average True Range: 256.68; VIX: 29.24

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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