Trade Strategy 7.17.20

Markets

U.S. futures are trying to come back from a lackluster session on Thursday that was dampened by data showing 1.3M people filing for unemployment benefits last week. At the time of writing, Dow and S&P 500 futures are up 0.3%, though the Nasdaq is powering ahead by 1%.

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

Source: https://www.investing.com/indices/indices-cfds

Economic Calendar

8:30 Housing Starts
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count

Source: https://www.investing.com/economic-calendar/

S&P 500 (ES)

Prior Session was Cycle Day 1 (CD1): Low was established early in session as price successfully tested multiple times 3192 Line-in-Sand (LIS) outlined in prior DTS Briefing 7.16.20. Neutral Day unfolded as range was kept in-check at 21.75 handles.

Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Options Expiry today with price trading in a relatively narrow overnight range within prior session’s range. We have two scenarios to consider for today’s trading.

1.) Price sustains a bid above 3195, initially targeting 3212 – 3217 zone.

2.) Price sustains an offer below 3195 initially targeting 3185 – 3175 zone.

P -VA High = 3222       P – VA Low = 3205        P – POC = 3217

Range Projections and Key Levels (ES) September 2020 (U) Contract

HOD  ATR Range Projection: 3240; LOD ATR Range Projection: 3176; 3 Day Central Pivot: 3195; 3 Day Cycle Target: 3262; 10 Day Average True Range  52; VIX: 27

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2) Price is currently trading in the upper quartile of prior session’s range within 3 Day Central Pivot Zone (10590 – 10612). We have two scenarios to consider for today’s trading:

P – VA High = 10609       P – VA Low = 10525         P – POC = 10598

Bull Scenario: IF Bulls sustain a bid above 10590, THEN initial upside estimate targets 10635 – 10655 zone.

Bear Scenario: IF Bears sustain an offer below 10590, THEN initial downside estimate targets 10560 – 10530 zone.

Range Projections and Key Levels (NQ) September 2020 (U) Contract

HOD  ATR Range Projection: 10704; LOD ATR Range Projection: 10470; 3 Day Central Pivot: 10601; 3 Day Cycle Target: 10752; 10 Day Average True Range: 229; VIX: 27

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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