Trade Strategy 6.25.18

Posted on by June 26, 2018
Markets
 
U.S. stock index futures are starting the week on the back foot as the WSJreported that the Trump administration was crafting twin initiatives against China that will be unveiled later this week. The first would block companies with at least 25% Chinese ownership from buying companies involved in “industrially significant technology.” “Enhanced” export controls are also in the works to counter Beijing’s drive to become a world leader in technology under policy “Made in China 2025.”
 
In Asia, Japan -0.8%. Hong Kong -1.3%. China +1.1%. India -0.6%. 
In Europe, at midday, London -1.1%. Paris -0.9%. Frankfurt -1.5%. 
Futures at 6:20, Dow -0.8%. S&P -0.7%. Nasdaq -1%. Crude +0.4% to $68.86. Gold flat at $1270.70. Bitcoin +0.5% to $6178. 
Ten-year Treasury Yield -2 bps to 2.87%
 
(Source: Seeking Alpha)
 
Economic Calendar

8:30 Chicago Fed National Activity Index
10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey

S&P 500

Today is Cycle Day 3 (CD3)…Price has pushed lower in overnight trade violating CD1 Low and fulfilling Violation Zones. Bulls will need a recovery above 2747 handle to stem further losses. Should price remain weak into RTH, expectation rises for potential margin selling.

Market Bias: Bullish

CD3 Range High = 2771.00          CD3 Range Low = 2726.25          CD3 Range Avg = 22.50 

Scenario 1: IF price can clear and convert 2747 to support, THEN upside recovery rally targets 2757 handle.

Scenario 2: IF price stays below 2747 during RTH, THEN further downside targets 2737 – 2732 zone.

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

HOD  ATR Range Projection: 2759.00; LOD ATR Range Projection: 2738.25; Cycle Day 1 Low: 2739.00; 3 Day Central Pivot: 2769.75; 3 Day Cycle Target: 2788.00; 10 Day Average True Range 19.50; VIX: 15.10

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has pushed lower in overnight trade violating CD1 Low and fulfilling Violation Zones. Bulls will need a recovery above 7165 handle to stem further losses. Should price remain weak into RTH, expectation rises for potential margin selling.

Market Bias: Bullish

CD3 Range High = 7193.75          CD3 Range Low = 7117.00          CD3 Range Avg = 51.00

Scenario 1: IF price can clear and convert 7165 to support, THEN upside recovery rally targets 7193 – 7219 zone.

Scenario 2: IF price stays below 7165.00 during RTH, THEN further downside targets  7141.50 – 7130.50 zone.

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

HOD  ATR Range Projection: 7223.50; LOD ATR Range Projection: 7141.50; Cycle Day 1 Low: 7138.50; 3 Day Central Pivot: 7264.50; 3 Day Cycle Target: 7271.00; 10 Day Average True Range: 81.00; VIX: 15.10

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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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