Trade Strategy 7.10.19

Markets

U.S. equity futures are suggesting a modestly lower open on Wall Street, with DJIA futures down 44 points, ahead of Powell’s big day on Capitol Hill and his likely defense of central bank independence in response to President Trump’s criticism of Fed policy. Adding to the excitement is the release of minutes from the FOMC’s last rate decision, offering new detail on how officials judged growing risks from trade uncertainty before last month’s G20 summit in Japan.

In Asia, Japan -0.2%. Hong Kong +0.3%. China -0.4%. India -0.5%. 
In Europe, at midday, London -0.1%. Paris -0.1%. Frankfurt -0.5%. 
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude +2.4% to $59.20. Gold -0.3% to $1397. Bitcoin +4.8% to $12950. 
Ten-year Treasury Yield +4 bps to 2.1%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar

http://mam.econoday.com/

10:00Atlanta Fed’s Business Inflation Expectations
10:00Wholesale Trade
10:00Powell testifies before House Financial Services Committee
10:30EIA Petroleum Inventories
1:00 PMResults of $24B, 10-Year Note Auction
1:30 PMFed’s Bullard Speech
2:00 PMFOMC minutes

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price rallied as expected following decline down to Cycle Low Averages. Today’s expectation is for some ‘back n fill’ consolidation of prior session’s rally. Current “sandbox-range” is marked between 2965 – 2985.

CD2 Range High = 2995.00       CD2 Range Low = 2963.00    CD2 Range Avg = 29.75

Scenario 1: IF Bulls hold bid above 2977, THEN initial upside potential targets 2987 – 2992 zone.

Scenario 2: IF Bears hold offer below 2977, THEN initial downside objective targets 2967 – 2965 zone.

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

HOD  ATR Range Projection: 2992.00; LOD ATR Range Projection: 2965.00; 3 Day Central Pivot: 2983.00; 3 Day Cycle Target: 2992.00; 10 Day Average True Range 21.60: VIX: 14.61

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)… Price rallied fulfilling 3 Day Cycle Target Objectives, following decline down to Cycle Low Averages. Today’s expectation is for some ‘back n fill’ consolidation of prior session’s rally. Support Pivot Zone is marked 7812 – 7815.

CD2 Range High = 7869.00          CD2 Range Low = 7762.00          CD2 Range Avg = 108.00

Scenario 1: IF Bulls hold bid above 7816, THEN initial upside potential targets 7846 – 7858 zone.

Scenario 2: IF Bears hold offer below 7816, THEN initial downside objective targets 7801 – 7787 zone.

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

HOD  ATR Range Projection: 7893.00; LOD ATR Range Projection: 7787.00; 3 Day Central Pivot: 7828.00; 3 Day Cycle Target: 7869.00; 10 Day Average True Range: 82.22; VIX: 14.61

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