Trade Strategy 5.13.19

Markets

It’s looking like another tough week for Wall Street, with DJIA futures off more than 300 points as investors await countermeasures from China after trade talks with the U.S. appeared to end in a stalemate.

In Asia, Japan -0.8%. Hong Kong closed. China -1.2%. India -1%. 
In Europe, at midday, London -0.1%. Paris -0.6%. Frankfurt -0.8%. 
Futures at 6:20, Dow -1.2%. S&P -1.3%. Nasdaq -1.7%. Crude +1.5% to $62.60. Gold -0.3% to $1284.10. Bitcoin -4% to $7,131. 
Ten-year Treasury Yield -3 bps to 2.43%

Economic Calendar

http://mam.econoday.com/

9:05Fed’s Rosengren Speech
9:10Fed’s Clarida Speech

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Prices are set for a Gap Down Opening though hovering near 5 Day Value area Low and within prior session’s range. There is lots of “price level real estate” that can be covered and with elevated volatility, best to be selective on trade setups and disciplined on risk parameters.

Volatility Index (VIX) is now sporting a 19 handle and the 10-Day Average True Range widened to 42 handles. As such, traders should make necessary adjustments to their risk-profiles and use proper position sizing.

CD2 Range High = 2869.50       CD2 Range Low = 2843.50    CD2 Range Avg = 26.00

Scenario 1: IF Bulls hold bid above 2857, THEN initial upside potential targets 2867 – 2873 zone.

Scenario 2: IF Bears hold offer below 2857, THEN initial downside objective targets 2845.50 – 2843.75 Low Range Zone with potential for retest of 2826.00 CD1 Low.

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

HOD  ATR Range Projection: 2887.25; LOD ATR Range Projection: 2826.75; 3 Day Central Pivot: 2873.00; 3 Day Cycle Target: 2862.75; 10 Day Average True Range 42.47; VIX: 18.77

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Prices are set for a Gap Down Opening though hovering near 5 Day Value area Low and within prior session’s range. There is lots of “price level real estate” that can be covered and with elevated volatility, best to be selective on trade setups and disciplined on risk parameters.

CD2 Range High = 7557.00          CD2 Range Low = 7665.00          CD2 Range Avg = 87.00

Scenario 1: IF Bulls hold bid above 7505, THEN initial upside potential targets 7520 – 7530 zone.

Scenario 2: IF Bears hold offer below 7505, THEN initial downside objective targets 7475 – 7465 Low Range Projection.

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

HOD  ATR Range Projection: 7611.25; LOD ATR Range Projection: 7409.25; 3 Day Central Pivot: 7595.00; 3 Day Cycle Target: 7554.00; 10 Day Average True Range: 142.32; VIX: 18.77

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