Trade Strategy 7.1.19

Markets

U.S.-China trade truce relief shows in stock markets futures, which indicate strong gains at the open. Nasdaq futures gain 1.7%, while the S&P futures rise 1.1% and Dow futures point to a 274-point, or 1%, advance. Stoxx Europe 600 Index rises 0.8% in morning trading. In Asia, the Nikkei 300 Index closed up 2.1% and Shanghai Composite rose 2.2%. Crude oil surged 2.6% after Russia and Saudi Arabia agreed this weekend to extend by 6-to-9 months the OPEC+ oil supply cut deal. 10-year Treasury fell, pushing yield up 2 basis points to 2.02%

In Asia, Japan +2.13%. Hong Kong closed. China +2.22%. India +0.65%. 
In Europe, at midday, London +1.13%. Paris +0.84%. Frankfurt +1.31%. 
Futures at 6:20, Dow +1%. S&P +1.1%. Nasdaq +1.7%. Crude +2.6% to $60.01. Gold -1.5% to $1,392.20. Bitcoin -6.2% to $11,099. 
Ten-year Treasury Yield +1.7bps to 2.017%.

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

http://mam.econoday.com/

9:45PMI Manufacturing Index
10:00ISM Manufacturing Index
10:00Construction Spending

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

S&P 500

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2923.00. Average Range for CD1 is 33.25 handles. Odds of decline > 10 handles = 73% Odds of decline > 20 = 43%

CD1 Range High = 2987.00       CD1 Range Low = 2956.00         CD1 Range Avg = 33.25

Scenario 1: IF Bulls hold bid above 2970, THEN initial upside targets 2980 – 2985 zone.

Scenario 2: IF Bears hold offer below 2970, THEN initial downside targets 2960 – 2955 zone.

Range Projections and Key Levels (ES) September 2019 (U) Contract

HOD  ATR Range Projection: 2985.00; LOD ATR Range Projection: 2958.00; 3 Day Central Pivot: 2932.50; 3 Day Cycle Target: 2990.00; 10 Day Average True Range 21.77; VIX: 14.00

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 7625.00. Average Range for CD1 is 119.25 handles. Odds of decline > 20 handles = 74% Odds of decline > 25 = 66%

CD1 Range High =7829.00           CD1 Range Low = 7778.50          CD1 Range Avg = 119.25

Scenario 1: IF Bulls hold bid above 7800, THEN initial upside targets 7830 – 7842 zone.

Scenario 2: IF Bears hold offer below 7800, THEN initial downside targets 7778 – 7760 zone.

Range Projections and Key Levels (NQ) September 2019 (U) Contract

HOD  ATR Range Projection: 7852.00; LOD ATR Range Projection: 7755.00; 3 Day Central Pivot: 7683.00; 3 Day Cycle Target: 7842.00; 10 Day Average True Range: 79.64; VIX: 14.00

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