Trade Strategy 5.9.18

Markets
 
U.S. crude has now topped $71 per barrel, soaring almost 3% overnight, after President Trump abandoned a nuclear deal with Iran and announced the “highest level” of sanctions against the OPEC member.
 
In Asia, Japan -0.4%. Hong Kong +0.4%. China -0.1%. India +0.3%
In Europe, at midday, London +0.5%. Paris -0.1%. Frankfurt flat. 
Futures at 6:20, Dow +0.5%. S&P +0.4%. Nasdaq +0.3%. Crude +2.8% to $71.01. Gold -0.5% to $1307.40. Bitcoin -0.5% to $9135. 
Ten-year Treasury Yield +3 bps to 3%
 
(Source: Seeking Alpha)
 
Economic Calendar

7:00 MBA Mortgage Applications
8:30 Producer Price Index
10:00 Wholesale Trade
10:30 EIA Petroleum Inventories
1:00 PM Results of $25B, 10-Year Note Auction
1:15 PM Fed’s Bostic Speech

S&P 500

Prior session was a textbook Cycle Day 2 as price back n filled fulfilling downside retracement objectives before reversing and closing in upper quartile of range.

Today is Cycle Day 3 (CD3)…Having closed strong, further upside momentum would be expected targeting 2688 3 Day Cycle Target.

Average Range for CD3 = 48.00

Scenario 1: IF price clears and converts 2674.25, THEN upside expansion targets 2684.25, followed by 2688 – 91 zone.

Scenario 2: IF price violates and converts 2670.25, THEN downside objective measures 2658.50.

HOD  ATR Range Projection: 2699.50; LOD ATR Range Projection: 2651.50; Cycle Day 1 Low: 2661.25; 3 Day Central Pivot: 2661.50; 3 Day Cycle Target: 2687.95; 10 Day Average True Range 32.94; VIX: 14.41

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Nasdaq 100 (NQ)

Prior session was a textbook Cycle Day 2 as price back n filled fulfilling downside retracement objectives before reversing and closing in upper quartile of range.

Today is Cycle Day 3 (CD3)…Having closed strong, further upside momentum would be expected targeting 6833.75 3 Day Cycle Target.

Average Range for CD2 = 152.15

Scenario 1: IF price clears and converts 6837.50, THEN upside expansion targets 6863.42, followed by 6883 – 93 zone.

Scenario 2: IF price violates and converts 6822.00, THEN downside objective measures 6799 handle.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6925.29; LOD ATR Range Projection: 6737.41; Cycle Day 1 Low: 6772.25; 3 Day Central Pivot: 6783.50; 3 Day Cycle Target: 6833.75; 10 Day Average True Range: 112.79; VIX: 14.41

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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