In Asia, Japan -2.3%. Hong Kong -3.1%. China -4%. India -1.2%.
In Europe, at midday, London -0.6%. Paris -1.2%. Frankfurt -1.3%.
Futures at 6:20, Dow +0.6%. S&P +0.8%. Nasdaq +0.9%. Crude -1.1% to $60.50. Gold +0.2% to $1317.10. Bitcoin +0.4% to $8268.
Ten-year Treasury Yield flat at 2.85%
Economic Calendar
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $16B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P 500 (ES)
Today is Cycle Day 1 (CD1)…Decline began in prior session fulfilling expected range targets. Price will need to hold prior low (2577.00) and begin this cycle’s rally, otherwise it could be a rough session for bulls.
Scenario 1: IF price can hold above PL (2577.00), THEN odds for recovery rally can unfold initially targeting 2620 – 2630 zone. Further strength will need to convert 2640 handle to extend any rally attempt.
Scenario 2: IF price violates and converts PL (2577.00) to lower resistance, THEN retest of extreme low (2529) increases in potential.
HOD ATR Range Projection: 2648.64; LOD ATR Range Projection: 2551.36; Cycle Day 1 Low: 2823.50; 3 Day Central Pivot: 2648.50; 3 Day Cycle Target: 2700.00; 10 Day Average True Range 65.64; VIX: 32.63
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is currently testing and holding above PC (6310.25)…Bulls will need to hold above for recovery rally. Initial objective is to convert 6340 to upper support which would open potential to accelerate higher targeting 6420 – 6440 zone.
Scenario 1: IF price clears and converts 6340, THEN odds favor extending higher targeting 6400, then 6420 – 40 zone.
Scenario 2: IF price violates and converts PL (6301.00), THEN retest of extreme low (6260) comes into play. Conversion of a break would then target 6234 – 6197 zone.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6469.45; LOD ATR Range Projection: 6197.55; Cycle Day 1 Low: 6884.75; 3 Day Central Pivot: 6518.00; 3 Day Cycle Target: 6636.00; 10 Day Average True Range: 180.95; VIX: 32.63
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.
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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