Trade Strategy 6.27.18

Markets
 
In Asia, Japan -0.3%. Hong Kong -1.8%. China -1.1%. India -0.8%
In Europe, at midday, London +0.1%. Paris +0.1%. Frankfurt +0.1%
Futures at 6:20, Dow -0.5%. S&P -0.4%. Nasdaq -0.7%. Crude +0.9% to $71.15. Gold +0.1% to $1260.50. Bitcoin +0.5% to $6105. 
Ten-year Treasury Yield -3 bps to 2.85%
 
(Source: Seeking Alpha)
 
Economic Calendar

7:00 MBA Mortgage Applications
8:30 Durable Goods
8:30 International trade in goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
11:00 Randal Quarles Speech
11:30 Results of $16B, 2-Year FRN Auction
12:15 PM Fed’s Rosengren Speech
1:00 PM Results of $36B, 5-Year Note Auction

S&P 500

Today is Cycle Day 2 (CD2)…Expectation is for continued consolidation with possible test of 2 day low for surety. Bulls need above 2730 handle which they struggled to sustained bid in prior session. Bears have slight edge to press for continuation lower.

Market Bias: Bullish

CD2 Range High = 2728.50          CD2 Range Low = 2698.50          CD2 Range Avg = 34.00 

Scenario 1: IF price clears and converts 2724.25, THEN upside objective would be to clear 2730 handle. 

Scenario 2: IF price fails to convert 2724.25, THEN downside objective measures 2707.50, followed by 2698.50 CD2 range low.

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

HOD  ATR Range Projection: 2730.50; LOD ATR Range Projection: 2707.50; Cycle Day 1 Low: 2714.75; 3 Day Central Pivot: 2769.75; 3 Day Cycle Target: 2741.50; 10 Day Average True Range 25.00; VIX: 16.82

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Expectation is for continued consolidation with possible test of 2 day low for surety. Bulls need above 7130 handle which they struggled to sustained bid in prior session. Bears have slight edge to press for continuation lower.

Market Bias: Bullish

CD2 Range High = 7124.25          CD2 Range Low = 7008.25          CD2 Range Avg = 111.00

Scenario 1: IF price clears and converts 7092.75, THEN upside objective would be to clear 7130 handle. 

Scenario 2: IF price fails to convert 7092.75, THEN downside objective measures 7019.00, followed by 7008.25 CD2 range low.

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

HOD  ATR Range Projection: 7113.50; LOD ATR Range Projection: 7019.00; Cycle Day 1 Low: 7057.75; 3 Day Central Pivot: 7138.00; 3 Day Cycle Target: 7120.00; 10 Day Average True Range: 100.00; VIX: 16.82

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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