Trade Strategy 5.4.18

Markets
 
Investors are getting ready for the monthly snapshot of the nation’s labor market, which comes today at 8:30 a.m. ET. Expectations are for a gain of 192,000 jobs in April, with the unemployment rate falling to 4% for the first time since December 2000. Wage growth is further anticipated at 0.2%, and anything higher than that could ramp up forecasts for more inflation and additional Fed rate hikes.
 
In Asia, Japan closed. Hong Kong -1.3%. China -0.3%. India -0.5%
In Europe, at midday, London +0.4%. Paris -0.1%. Frankfurt +0.4%
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude +0.3% to $68.66. Gold -0.1% to $1311. Bitcoin -0.5% to $9689. 
Ten-year Treasury Yield -1 bps to 2.93%
 
(Source: Seeking Alpha)
 
Economic Calendar

8:30 Non-farm payrolls
12:45 PM Fed’s Williams Speech
1:00 PM Baker-Hughes Rig Count
8:00 PM Fed’s Kaplan speech
8:00 PM Fed’s Bostic speech
8:00 PM Fed’s George speech

S&P 500

Today is Cycle Day 3 (CD2)…Secure low was found at extreme Standard Deviation Level (2694) at which time this cycle’s rally began in earnest. Simply a textbook Cycle Day 2 (CD2).

Price is currently trading within 3 Day Central Pivot Zone (2632 – 2635). Bulls will need to convert 2635 handle to support for rally to continue higher. Bear need repellent with a violation of 2620 handle.

Average Range on CD3 = 50.58

Scenario 1: IF price clears and converts 2636, THEN upside measures 2645 – 2650 zone.

Scenario 2: IF price violates and converts 2620, THEN downside measures 2612 – 2608 zone.

HOD  ATR Range Projection: 2657.50; LOD ATR Range Projection: 2600.00; Cycle Day 1 Low: 2625.75; 3 Day Central Pivot: 2633.75; 3 Day Cycle Target: 2650.00; 10 Day Average True Range 34.89; VIX: 15.96

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD2)…Secure low was found at extreme Standard Deviation Level (6560) at which time this cycle’s rally began in earnest. Simply a textbook Cycle Day 2 (CD2).

Price is currently trading within 3 Day Central Pivot Zone (6647.25 – 6662.75). Bulls will need to convert 6673 handle to support for rally to continue higher. Bear need repellent with a violation of 6622 handle.

Average Range on CD3 = 159.13

Scenario 1: IF price clears and converts 6673, THEN upside measures 6710 – 6725 zone.

Scenario 2: IF price violates and converts 6622, THEN downside measures 6610 – 6600 zone.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6756.25; LOD ATR Range Projection: 6549.25; Cycle Day 1 Low: 6625.25; 3 Day Central Pivot: 6655.00; 3 Day Cycle Target: 6686.50; 10 Day Average True Range: 123.73; VIX: 15.96

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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


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