Trade Strategy 5.8.18

Markets
 
In Asia, Japan +0.2%. Hong Kong +1.4%. China +0.8%. India flat. 
In Europe, at midday, London flat. Paris -0.6%. Frankfurt -0.6%
Futures at 6:20, Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude -1.3% to $69.83. Gold -0.3% to $1309.80. Bitcoin -0.6% to $9303. 
Ten-year Treasury Yield flat at 2.95%
 
(Source: Seeking Alpha)
 
Economic Calendar

3:00 Fed’s Powell Speech
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
1:00 PM Results of $31B, 3-Year Note Auction

S&P 500

Today is Cycle Day 2 (CD2)…Price is hovering near to CD1 Low (2661.25)…Violation and conversion of this level opens door to a deeper downside decline which may have been slightly delayed. Prior high (2681.50) become key resistance marker.

Average Range for CD2 = 44.50.

Scenario 1: Bulls need to keep price above CD1 Low (2661.25) and recover PC (2668.75)

Scenario 2: Bears are looking for a CD1 Low (2661.25) violation targeting 2650 handle.

HOD  ATR Range Projection: 2694.25; LOD ATR Range Projection: 2636.75; Cycle Day 1 Low: 2661.25; 3 Day Central Pivot: 2646.25; 3 Day Cycle Target: 2714.00; 10 Day Average True Range 35.37; VIX: 15.00

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Nasdaq 100 (NQ)

 

Today is Cycle Day 2 (CD2)…Price is holding with prior trading range…Any violation and conversion of 6800 handle opens door to a deeper decline targeting CD1 Low 6772.25.

Average Range for CD2 = 144.75

Scenario 1: Bulls need to hold 6800 and recover PC (6818.00) targeting 6846 handle if successful.

Scenario 2: Bears are looking for a break of 6800 to push for lower targeting CD1 Low 6772.25.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6918.75; LOD ATR Range Projection: 6714.00; Cycle Day 1 Low: 6772.25; 3 Day Central Pivot: 6721.75; 3 Day Cycle Target: 6953.50; 10 Day Average True Range: 123.50; VIX: 15.00

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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