Markets
U.S. stock futures follow most global markets in indicating a higher open, as today’s conclusion of the Federal Reserve policy meeting is expected to keep the benchmark interest rate near zero and maintain strong support for business during the COVID-19 pandemic.
Source: Seeking Alpha https://seekingalpha.com/
Stock futures are positive by 1.0% during overnight trade action
Source: https://www.investing.com/indices/indices-cfds
Crude oil prices could be on the rebound, as June WTI crude futures rose 14% overnight after the American Petroleum Institute revealed a 10 million barrel increase in crude inventories in the latest weekly data, below the prior week’s 13.2 million barrel build and short of analyst expectations.
Source: https://www.investing.com/economic-calendar/eia-crude-oil-inventories-75
Goldman Sachs is out with a report highlighting a number of reasons why it is more positive on energy stocks, saying demand appears to be near a trough, shut-in announcements are becoming material and valuation is near 25-year lows by some measures.
Source: https://seekingalpha.com/news/3565771-oil-bounces-goldman-starts-to-see-positives-in-energy-sector
Economic Calendar
8:30 GDP Q1
10:00 Pending Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
2:00 PM FOMC Announcement
2:00 PM Chairman Press Conference
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Following early strength that took price to initial upside targets (2908 – 2912) fell apart as normal CD1 declined, testing the key support zone between 2850 – 2855, settling at 2860.50. We’ve marked 2850 as a key 2-day Line-In-Sand (LIS).
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed low within the range, we have two scenarios: 1.) Violation of CD1 Low (2851), extending, targeting CD2 Violation Level (2836.50). 2.) Price holds CD1 Low (2851), pushing higher on the recovery rally targeting 2904 – 2909 zone.which represents 2x historical CD2 range.
P – VA High = 2885 P – VA Low = 2853 P – POC = 2873
Bull Scenario: IF Bulls hold bid above 2851, THEN initial upside estimate targets 2904 – 2909 zone
Bear Scenario: IF Bears hold offer below 2851, THEN initial downside estimate targets 2845 – 2836 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2920; LOD ATR Range Projection: 2846; 3 Day Central Pivot: 2845; 3 Day Cycle Target: 2953; 10 Day Average True Range 58; VIX: 32
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has rallied off CD1 Low (8654.50) retracing three-fourths of prior day’s range following positive Alphabet’s (GOOGL) earnings. Currently at 5-day POC (8830), CD2 is expected to have a wide trading range.
P – VA High = 8830 P – VA Low = 8676 P – POC = 8715
Bull Scenario: IF Bulls hold bid above 8698, THEN initial upside estimate targets 8815 – 8830 zone.
Bear Scenario: IF Bears hold offer below 8698, THEN initial downside estimate targets 8618 – 8596 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8830; LOD ATR Range Projection: 8652; 3 Day Central Pivot: 8575; 3 Day Cycle Target: 8972; 10 Day Average True Range: 208; VIX: 32
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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