Trade Strategy 3.19.20

Markets

Investors in the U.S. sold nearly everything they could on Wednesday despite President Trump signing a $100B coronavirus relief bill and Congress turning its focus to broader economic stimulus. Stock index futures wavered between gains and losses overnight, while crude posted a big rebound as WTI futures soared 13% to $23.53/bbl.

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

Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Current Account
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

S&P 500

Prior Session was Cycle Day 3 (CD3)…Price experienced 2 limit locked occurrences violating 2 day lows, hitting CD3 Statistical extremes before rallying into the closing bell. Positive 3 Day Cycle Statistics were fulfilled.

This leads us into today’s Cycle Day 1 (CD1)…Normal for CD1 is some magnitude decline, which has already been fulfilled during overnight trade. Price is currently oscillating between 2460 – 2270 as markets are desperately seeking some type of stabilization and calmness.

Overseas Markets are currently trading in negative territory, while US Markets are bracing for a “modest” minus 2% opening bell. VIX = 80.80

We’ll keep the “High Surf Warning” posted for the foreseeable future.

P-VA High = 2520       P-VA Low = 2430         P-POC = 2485

Bull Scenario: IF Bulls hold bid above 2355, THEN initial upside estimate targets 2420 – 2430 zone

Bear Scenario: IF Bears hold offer below 2355, THEN initial downside estimate targets 2318 – 2290 zone.

Range Projections and Key Levels (ES) June 2020 (M) Contract

HOD  ATR Range Projection: 2526.00; LOD ATR Range Projection: 2209.00; 3 Day Central Pivot: 2440.00; 3 Day Cycle Target: 2500.00; 3 Day Average True Range 254; VIX: 80.80

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal for CD1 is some magnitude decline, which has already been fulfilled during overnight trade. Price is currently oscillating between 7324 – 6810 as markets are desperately seeking some type of stabilization and calmness.

P-VA High = 7470           P-VA Low = 7200          P-POC = 7375

Bull Scenario: IF Bulls hold bid above 7065, THEN initial upside estimate targets 7160 – 7220 zone.

Bear Scenario: IF Bears hold offer below 7065, THEN initial downside estimate targets 6980 – 6880 zone.

Range Projections and Key Levels (NQ) June 2020 (M) Contract

HOD  ATR Range Projection: 7612.00; LOD ATR Range Projection: 6685.00; 3 Day Central Pivot: 7230.00; 3 Day Cycle Target: 7400.00; 3 Day Average True Range: 677; VIX: 80.80

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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