Trade Strategy 6.1.18

Posted on by June 4, 2018
Markets
 
The next snapshot of the U.S. economy is likely to show another 189,000 jobs added in May, with the unemployment rate holding steady at 3.9% and average earnings expected to have risen 2.7% on an annualized basis. The nonfarm payrolls report will also cement expectations that the Fed will raise interest rates again in June, but chances for a fourth rate hike this year have dimmed to 27%, according to CME Group, down from around 50% last week.
 
In Asia, Japan -0.1%. Hong Kong +0.1%. China -0.7%. India -0.3%. 
In Europe, at midday, London +0.7%. Paris +1.2%. Frankfurt +1%. 
Futures at 6:20, Dow +0.5%. S&P +0.4%. Nasdaq +0.3%. Crude -0.5% to $66.70. Gold -0.2% to $1302.60. Bitcoin +0.8% to $7548. 
Ten-year Treasury Yield +6 bps to 2.89%
 
(Source: Seeking Alpha)
 
Economic Calendar

8:30 Non-farm payrolls
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
1:00 PM Baker-Hughes Rig Count

S&P 500

Today is Cycle Day 2 (CD2)…Prior session was a Normal Cycle Day 1 as price declined 2708 – 2705 to fulfill range objectives. Rally has begun off the CD1 Low extending into overnight trade currently reaching 3 Day Central Pivot Zone (2720 – 2723). Bulls will need to retain ball-control above any test of 2712 handle.

Possible CD2 Range High = 2728 

Average Range for CD2 = 22.75

Scenario 1: IF price holds above PC (2707.50), THEN initial upside potential measures 2720 – 2723 3D Central Pivot Zone.

Scenario 2: IF price violates PC (2707.50), THEN downside measures 2696 CD2 Range Low.

HOD  ATR Range Projection: 2732.00; LOD ATR Range Projection: 2707.50; Cycle Day 1 Low: 2699.75; 3 Day Central Pivot: 2721.50; 3 Day Cycle Target: 2746.00; 10 Day Average True Range 26.50; VIX: 14.69

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Prior session was a Normal Cycle Day 1 as price declined to fulfill range objectives. Rally has begun off the CD1 Low extending into overnight trade currently testing prior high zone.. Bulls will need to retain ball-control above any test of 6983 handle.

Possible CD2 Range High = 7028

Average Range for CD2 = 51.00

Scenario 1: IF price holds above PC (6983), THEN initial upside potential measures 7020 – 7030 zone.

Scenario 2: IF price violates PC (6983), THEN downside measures 6957.00 CD2 Range Low.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 7048.75; LOD ATR Range Projection: 6936.50; Cycle Day 1 Low: 6958.25; 3 Day Central Pivot: 6966.25; 3 Day Cycle Target: 7020.00; 10 Day Average True Range: 70.60; VIX: 14.69

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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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