Trade Strategy 4.3.19

Markets

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are set to resume trade talks today with Chinese Vice Premier Liu He as global equities rally in response to positive statements surrounding the discussions. The Shanghai Composite closed up 1.2%, Europe is ahead 1% at midday and the DJIA is pointing to triple-digit gains.

Crude futures are on track for a fourth consecutive positive trading session, adding 0.3% to trade at $62.70 per barrel and pushing gains for this year to 38%. Brent crude is just under $70 per barrel, with output falling for a fourth month amid continued OPEC production cuts and sanctions on Iran and Venezuela. The U.S. Energy Information Administration will release a report on crude inventories at 10:30 a.m. ET.

In Asia, Japan +1%. Hong Kong +1.2%. China +1.2%. India -0.5%. 
In Europe, at midday, London +0.1%. Paris +0.6%. Frankfurt +1.2%. 
Futures at 6:20, Dow +0.4%. S&P +0.5%. Nasdaq +0.6%. Crude +0.3% to $62.70. Gold +0.1% to $1297. Bitcoin +3.8% to $4951. 
Ten-year Treasury Yield +4 bps to 2.52%

Source: Seeking Alpha

Economic Calendar

http://mam.econoday.com/

7:00MBA Mortgage Applications
8:15ADP Jobs Report
8:30Fed’s Bostic Speech
9:45PMI Services Index
10:00ISM Non-Manufacturing Index
10:30EIA Petroleum Inventories
5:00 PMFed’s Kashkari speech

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price is extending this cycle’s rally during pre-RTH trade fulfilling CD2 Penetration Level 2882.50. Further upside measures 2886.50 – 2890.25 3 Day Rally Target Zone.

CD2 Range High = 2889.00       CD2 Range Low = 2860.00    CD2 Range Avg = 33.00

Scenario 1: IF Bulls hold bid above 2873.75, THEN initial upside potential targets 2882.50 – 2886.50 CD2 Penetration Zone.

Scenario 2: IF Bears hold offer below 2873.75, THEN initial downside objective targets 2862.25 – 2860.00 Range Pivot Zone.

Range Projections and Key Levels (ES) June 2019 (M) Contract

HOD  ATR Range Projection: 2892.50; LOD ATR Range Projection: 2856.50; 3 Day Central Pivot: 2854.50; 3 Day Cycle Target: 2890.25; 10 Day Average True Range 27.50; VIX: 13.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is extending this cycle’s rally during pre-RTH trade fulfilling 3 Day Rally Objective (7553.25) as well as 7570 – 7373 CD2 STATX Range Zone.

CD2 Range High = 7570.00          CD2 Range Low = 7520.00          CD2 Range Avg = 56.50

Scenario 1: IF Bulls hold bid above 7532.50, THEN initial upside potential targets 7570 – 7573 CD2 STATX Range Zone.

Scenario 2: IF Bears hold offer below 7532.50, THEN initial downside objective targets 7520 – 7510 Range Pivot Zone.

Range Projections and Key Levels (NQ) June 2019 (M) Contract

HOD  ATR Range Projection: 7600.50; LOD ATR Range Projection: 7489.50; 3 Day Central Pivot: 7460.25; 3 Day Cycle Target: 7553.25; 10 Day Average True Range: 87.00; VIX: 13.00

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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