Trade Strategy 6.19.20

Markets

Looking for a catalyst after a muted session on Thursday, U.S. stock index futures advanced 1% overnight after hugging the flatline for most of the session.

Source: SeekingAlpha.com

Economic Calendar

8:30 Current Account
10:15 Fed’s Rosengren: U.S. Economy
12:00 PM Fed’s Quarles: “Stress Testing”
1:00 PM Jerome Powell Speech
1:00 PM Fed’s Mester Speech
1:00 PM Baker-Hughes Rig Count

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 2 (CD2): Normal CD2 unfolded as price consolidated within range with contract rollover and option premiums were “sucked-out” of expiring contracts today.

Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Having closed mid-range and option premiums collapsed, we then have two scenarios to consider:

1.) Price sustains a bid rallying above PH (3120) initially targeting 3128 – 3135 D-Level Money Box Zone.

2.) Price sustains an offer below VWAP (3100) initially targeting 3095 – 3090 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3107       PVA Low Edge = 3090         Prior POC = 3100

Range Projections and Key Levels (ES) September 2020 (U) Contract

HOD  ATR Range Projection: 3144; LOD ATR Range Projection: 3040; 3 Day Central Pivot: 3108; 3 Day Cycle Target: 3125; 10 Day Average True Range  80; VIX: 32

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price is rallying above prior high pre-RTH following prior session consolidation period as options expire today.

PVA High Edge = 9988           PVA Low Edge = 9950         Prior POC = 9970

Bull Scenario: IF Bulls hold bid above 10029, THEN initial upside estimate targets 10051 – 10073 D-Level Money Box Zone.

Bear Scenario: IF Bears hold offer below 10029, THEN initial downside estimate targets 9990 – 9970 mean reversion.

Range Projections and Key Levels (NQ) September 2020 (U) Contract

HOD  ATR Range Projection: 10107; LOD ATR Range Projection: 9788; 3 Day Central Pivot: 9954; 3 Day Cycle Target: 9998; 10 Day Average True Range: 241; VIX: 32

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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