Trade Strategy 6.22.20

Markets

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar

10:00 Existing Home Sales

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

S&P 500

Friday’s Session was Cycle Day 3 (CD3): Price fulfilled Positive 3 Day Cycle Statistic before reversing early strength to sell down during afternoon session with QUAD Witching Options Expiration.

Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Normal for a CD1 is for some magnitude decline with Average measuring 3063 which has been fulfilled during GLOBEX Session.. Having traded below prior Low and fulfilled CD1 Average Decline objective, we then have Two Scenarios to consider.

1.) Price sustains a bid above 3057, targeting 3092 – 3104 zone.

2.) Price sustains an offer below 3057 targeting 3043 – 3033 zone.

P-VA High = 3123       P-VA Low = 3073         P-POC = 3092

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

HOD  ATR Range Projection: 3157; LOD ATR Range Projection: 3066; 3 Day Central Pivot: 3103; 10 Day Average True Range 79; VIX: 34

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price trade below CD3 Low during GLOBEX Session fulfilling 9861 CD1 Average Decline Objective. This leads us to Two Scenarios to consider for today’s trading:

P-VA High = 10112           P-VA Low = 9992          P-POC = 10088

Bull Scenario: IF Bulls hold bid above 9916, THEN initial upside estimate targets 9992 – 10112 zone.

Bear Scenario: IF Bears hold offer below 9916, THEN initial downside estimate targets 9861 – 9848 zone.

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

HOD  ATR Range Projection: 10169; LOD ATR Range Projection: 9880; 3 Day Central Pivot: 9984; 10 Day Average True Range: 233; VIX: 34

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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