Trade Strategy 6.28.18

Markets
 
In Asia, Japan flat. Hong Kong +0.5%. China -0.9%. India -0.5%
In Europe, at midday, London flat. Paris -0.3%. Frankfurt -0.7%
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.1% to $72.88. Gold -0.2% to $1254.10. Bitcoin -0.7% to $6090. 
Ten-year Treasury Yield flat at 2.84%
 
(Source: Seeking Alpha)
 
Economic Calendar

8:30 Initial Jobless Claims
8:30 GDP Q1
8:30 Corporate profits
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
10:45 Fed’s Bullard speech
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $30B, 7-Year Note Auction
3:00 PM Farm Prices
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

S&P 500

Today is Cycle Day 3 (CD3)…Price tested and holding above key 2700 level in overnight trade, but failing to find an aggressive bid. Bulls will need to hold bid above 2705.75 prior close and push to get back above 2739.00 CD1 Low. Violation and conversion below 2700 could force long liquidation margin selling.

Market Bias: Short-term: Bearish (correction)

CD3 Range High = 2725.50          CD3 Range Low = 2687.00          CD3 Range Avg = 30.25 

Scenario 1: IF price holds above PC (2705.75), THEN initial objective is to clear and convert 2717 handle to upper support. IF successful, further upside targets 2725 – 2730 zone.

Scenario 2: IF price violates and converts 2700 to lower resistance, THEN downside targets 2694 – 2687 zone.

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

HOD  ATR Range Projection: 2731.75; LOD ATR Range Projection: 2688.50; Cycle Day 1 Low: 2739.00; 3 Day Central Pivot: 2723.25; 3 Day Cycle Target: 2741.50; 10 Day Average True Range 29.00; VIX: 17.50

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price tested and holding above key 6995 level in overnight trade, but failing to find an aggressive bid. Bulls will need to hold bid above 6999.25 prior close and push to get back above 7077 handle.. Violation and conversion below 6990 handle  could force long liquidation margin selling.

Market Bias: Short-term: Bearish (correction)

CD3 Range High = 7095.50          CD3 Range Low = 6935.00          CD3 Range Avg = 104.00

Scenario 1: IF price holds above PC (6999.25), THEN initial objective is to clear and convert 7043 handle to upper support. IF successful, further upside targets 7065.50 – 7088.00 zone.

Scenario 2: IF price violates and converts 6990  to lower resistance, THEN downside targets 6935.00 – 6927.50 zone.

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

HOD  ATR Range Projection: 7103.00; LOD ATR Range Projection: 6927.50; Cycle Day 1 Low: 7138.50; 3 Day Central Pivot: 7076.75; 3 Day Cycle Target: 7196.50; 10 Day Average True Range: 111.50; VIX: 17.50

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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