Trade Strategy 2.7.20

Markets

Climbing to all-time highs in the previous session on China’s decision to halve tariffs on a slew of U.S. products, U.S. stock index futures slipped 0.4% overnight following a four-day winning streak on Wall Street. The big news today is January’s jobs report, which will likely show a net increase of 160,000 jobs and for the unemployment rate to stay flat at 3.5%.

In Asia, Japan -0.2%. Hong Kong -0.3%. China +0.3%. India -0.4%.
In Europe, at midday, London -0.6%. Paris -0.3%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.4%. S&P -0.4%. Nasdaq -0.5%. Crude -0.1% to $50.91. Gold +0.2% to $1572.50. Bitcoin +1.7% to $9811.
Ten-year Treasury Yield -5 bps to 1.6%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

8:30 Non-farm payrolls
10:00 Wholesale Trade
1:00 PM Baker-Hughes Rig Count
3:00 PM Consumer Credit

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

***PTG Trading Room Chat Log’s Link

S&P 500 (ES)

Today is a Cycle Day 2 (CD2)…Price back pulled back from recent ATH and testing Cycle Day 1 Low (3332.50). This is normal activity for CD2 with expectation of some “back n fill” price action to absorb recent upside trend direction.

Violation and conversion of CD1 Low would put pressure on the bullish trend with possible deeper decline. Recovery back above 3345 would increase probability of a secure cycle low.

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.

*****ANNOUNCEMENT: PTG Trader Tool Box Indicator & Strategy Suite is now available for NinjaTrader 8 trading platform.

*****The 3 Day Cycle Spreadsheet which subscribers receive shortly after market close for next trading session contains all the projected range targets. Here is link to web page to learn more: https://polaristradinggroup.com/ptg-3-day-cycle/

Bull Scenario: IF Bulls hold bid above 3333, THEN initial upside potential targets 3343 – 3348 zone.

Bear Scenario: IF Bears hold offer below 3333, THEN initial downside objective targets 3325 – 3320 zone.

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

HOD  ATR Range Projection: 3366.00; LOD ATR Range Projection: 3312.00; 3 Day Central Pivot: 3316.00; 3 Day Cycle Target: 3373.00; 10 Day Average True Range 38.25: VIX: 15.39

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has pulled back from ATH but still solidly above Cycle Day 1 Low (9362.50). Normal activity for CD2 with expectation of some “back n fill” price action to absorb recent upside trend direction.

Bull Scenario: IF Bulls hold bid above 9408, THEN initial upside potential targets 9440 – 9455 zone.

Bear Scenario: IF Bears hold offer below 9408, THEN initial downside objective targets 9383 – 9363 zone.

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

HOD  ATR Range Projection: 9637.00; LOD ATR Range Projection: 9329.00; 3 Day Central Pivot: 9363.00; 3 Day Cycle Target: 9519.00; 10 Day Average True Range: 142.00; VIX: 15.39

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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