Trade Strategy 3.26.20

Markets

Today’s weekly jobless claims report is set to grab the attention of both Wall Street and Main Street, offering proof that the economy is already in recession. The number, which could surge to at least one million, is especially in focus after the U.S. Labor Department asked individual state governments to postpone publishing unemployment data (dusting off the 2008 playbook). That would shatter a previous record of nearly 700,000 back in 1982, when the U.S. hiked interest rates to quash inflation. S&P 500 futures are off by 1.5% ahead of the big release.

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

Economic Calendar

8:30 GDP Q4
8:30 Initial Jobless Claims
8:30 International trade in goods
8:30 Corporate profits
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $32B, 7-Year Note Auction
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

Price across indexes are in negative territory during GLOBEX Session.

Prior Session was Cycle Day 2…Normal CD2 as price oscillated albeit within a wide 150 point range, but closed within the MID-VWAP Zone.

Transition from Cycle Day 2 to Cycle Day 3

Today is a Cycle Day 3 (CD3)…Markets are above CD1 Low fulfilling Positive 3 Day Cycle Statistic. Currently price is trading within prior Value Zone near 2440 handle, which will be today’s Line-In-Sand (LIS).

We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 63 and ATR (10) 186 handles.

****IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.

PVA High Edge = 2533       PVA Low Edge = 2440         Prior POC = 2453

Bull Scenario: IF Bulls hold bid above 2440, THEN initial upside estimate targets 2475 – 2500 zone.

Bear Scenario: IF Bears hold offer below 2440, THEN initial downside estimate targets 2400 – 2375 zone.

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

HOD  ATR Range Projection: 2598.00; LOD ATR Range Projection: 2311.00; 3 Day Central Pivot: 2368.00; 3 Day Cycle Target: 2296.00; 10 Day Average True Range  186.00; VIX: 64

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has pulled back into prior range, currently holding support near prior POC/VAL and above 3 Day Central Pivot Zone (7276 – 7316). Bulls will need to keep firm bid above these levels otherwise risk deeper price set back.

PVA High Edge = 7703           PVA Low Edge = 7503          Prior POC = 7650

Bull Scenario: IF Bulls hold bid above 7345, THEN initial upside estimate targets 7420 – 7450 zone.

Bear Scenario: IF Bears hold offer below 7345, THEN initial downside estimate targets 7316 – 7276 zone.

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

HOD  ATR Range Projection: 7838.00; LOD ATR Range Projection: 7033.00; 3 Day Central Pivot: 7296.00; 3 Day Cycle Target: 7238.00; 10 Day Average True Range: 517.00; VIX: 64

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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