Trade Strategy 5.10.19

Markets

DJIA futures fell over 100 points overnight after President Trump’s tariff increase on $200B worth of Chinese goods took effect after midnight, but those losses have now been erased, while Shanghai closed up 3.1%.

In Asia, Japan +0.3%. Hong Kong +0.8%. China +3.1%. India +0.3%. 
In Europe, at midday, London +0.5%. Paris +0.8%. Frankfurt +1.1%. 
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +0.4% to $61.97. Gold steady at $1285.70. Bitcoin +4% to $6293. 
Ten-year Treasury Yield unchanged at 2.46%

Source: Seeking Alpha

http://mam.econoday.com/

8:30Consumer Price Index
8:30Fed’s Brainard: “Renewing the Promise of the Middle Class”
9:05Fed’s Bostic: Economic Outlook and Monetary Policy
10:00Fed’s Williams Speech
1:00 PMBaker-Hughes Rig Count
2:00 PMTreasury Budget
10:55Fed’s Daly Speech on Sunday

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

S&P 500

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2955.00 (FULFILLED). Average Range for CD1 is 26.75 handles. Odds of decline > 10 handles = 72% Odds of decline > 20 = 43%

CD1 Range High = 2979.00       CD1 Range Low = 2962.00         CD1 Range Avg = 26.75

Scenario 1: IF Bulls hold bid above 2872, THEN initial upside targets 2885 – 2890 zone.

Scenario 2: IF Bears hold offer below 2872, THEN initial downside targets 2860 – 2855 zone.

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

HOD  ATR Range Projection: 2890.00; LOD ATR Range Projection: 2852.00; 3 Day Central Pivot: 2881.00 3 Day Cycle Target: 2890.00; 10 Day Average True Range 37.00; VIX: 19.40

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 7555.25 (FULFILLED). Average Range for CD1 is 85.50 handles. Odds of decline > 20 handles = 74% Odds of decline > 25 = 65%

CD1 Range High =7618.00           CD1 Range Low = 7569.00          CD1 Range Avg = 85.50

Scenario 1: IF Bulls hold bid above 7593.00, THEN initial upside targets 7644.50 – 7650.50 3 Day Cycle Target (FULFILLED).

Scenario 2: IF Bears hold offer below 7738.50, THEN initial downside targets 7560 – 7555 Average Decline Zone (FULFILLED).

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

HOD  ATR Range Projection: 7661.75; LOD ATR Range Projection: 7525.25; 3 Day Central Pivot: 7635.00; 3 Day Cycle Target: 7650.50; 10 Day Average True Range: 129.25; VIX: 19.40

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