In Europe, at midday, London -0.5%. Paris -0.2%. Frankfurt -0.3%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq -0.1%. Crude +0.2% to $66.80. Gold +0.5% to $1308.10. Bitcoin +3% to $6485.
Ten-year Treasury Yield -3 bps to 2.95%
8:30 Initial Jobless Claims
8:30 Import/Export Prices
8:30 Retail Sales
9:45 Bloomberg Consumer Comfort Index
10:00 Business Inventories
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P 500
Today is Cycle Day 2 (CD2)…Price is rallying higher in overnight trade following late day decline in prior session which took price down to stated target zone: “Scenario 2: IF price violates and converts 2786.00, THEN downside objective measures 2774 – 2772 zone.” Overnight low measures: 2772.25…Direct Hit! Today’s recovery objective is 2783 handle.
Market Bias: Bullish
CD2 Range High = 2795.00 CD2 Range Low = 2760.50 CD2 Range Avg = 22.75
Scenario 1: IF price clears and converts 2779.50 to firm support, THEN upside initially targets 2783.50, followed by 2788 – 90 zone.
Scenario 2: IF price violates and converts 2779.50 to firm resistance, THEN downside targets retest of 2772.25.
Range Projections and Key Levels (ES) September (U) Contract
HOD ATR Range Projection: 2790.50; LOD ATR Range Projection: 2765.00; Cycle Day 1 Low: 2778.50; 3 Day Central Pivot: 2740.00; 3 Day Cycle Target: 2805.50; 10 Day Average True Range 18..00; VIX: 12.78
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is rallying higher in overnight trade following late day decline in prior session which took price down to stated target zone: “Scenario 2: IF price violates and converts 7230.25, THEN downside objective measures 7217.50 – 7207.50 zone.” Overnight low measures: 7205.25…Direct Hit! Today’s recovery objective is 7242 handle.
Market Bias: Bullish
CD2 Range High = 7256.50 CD2 Range Low = 7191.50 CD2 Range Avg = 51.00
Scenario 1: IF price clears and converts 7232.75 to firm support, THEN upside initially targets 7242.75, followed by 7248 – 7256 zone.
Scenario 2: IF price violates and converts 7232.75 to firm resistance, THEN downside targets retest of 7205.25.
Range Projections and Key Levels (NQ) September (U) Contract
HOD ATR Range Projection: 7271.25; LOD ATR Range Projection: 7177.00; Cycle Day 1 Low: 7219.25; 3 Day Central Pivot: 7218.50; 3 Day Cycle Target: 7281.50; 10 Day Average True Range: 65.00; VIX: 12.78
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.
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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