Trade Strategy 5.17.18

Markets
 
In Asia, Japan +0.5%. Hong Kong -0.5%. China -0.5%. India -0.7%
In Europe, at midday, London +0.2%. Paris +0.4%. Frankfurt +0.2%
Futures at 6:20, Dow -0.1%. S&P -0.2%. Nasdaq -0.4%. Crude +0.9% to $72.11. Gold -0.3% to $1287.80. Bitcoin -0.3% to $8312. 
Ten-year Treasury Yield +2 bps to 3.11%
 
(Source: Seeking Alpha)
 
Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 E-Commerce Retail Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

S&P 500

Today is Cycle Day 3 (CD3)…Price has fulfilled this cycle’s objectives in prior session. As such, today could be “iffy” on direction with potential option expiry playing a role. Some back n fill rotation would be normally expected with initial support zone between 2713 – 2716.

Average Range for CD3 = 22.50

Scenario 1: IF price holds above PC (2721.75), THEN initial objective is retest of PH (2728.00). IF converts, THEN expansion targets 2736 – 38 zone.

Scenario 2: IF price holds below PC (2721.75), THEN initial downside objective targets test of 2716 – 13 zone. IF converted to lower resistance, THEN further downside measures 2706 – 2704 zone.

HOD  ATR Range Projection: 2741.50; LOD ATR Range Projection: 2699.50; Cycle Day 1 Low: 2661.25; 3 Day Central Pivot: 2721.25; 3 Day Cycle Target: 2687.95; 10 Day Average True Range 25.50; VIX: 13.50

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has fulfilled this cycle’s objectives in prior session. As such, today could be “iffy” on direction with potential option expiry playing a role. Some back n fill rotation would be normally expected with initial support zone between 6924 – 6910.

Average Range for CD3 = 51.00

Scenario 1: IF price holds above PC (6934.25), THEN initial objective is retest of PH (6953.50). IF converts, THEN expansion targets 6958 – 6973 zone.

Scenario 2: IF price holds below PC (6934.25), THEN initial downside objective targets test of 6923 – 6910 zone. IF converted to lower resistance, THEN further downside measures 6894 – 6884 zone.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6993.00; LOD ATR Range Projection: 6858.00; Cycle Day 1 Low: 6772.25; 3 Day Central Pivot: 6936.00; 3 Day Cycle Target: 6833.75; 10 Day Average True Range: 86.50; VIX: 13.50

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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