Trade Strategy 7.2.18

Markets
 
Stocks across the globe are once again opening the week in the red as tough trade talk over the weekend weighed on investor sentiment. The EU warned of hefty reciprocal U.S. tariffs.
 
In Asia, Japan -2.2%. Hong Kong +1.6%. China -2.5%. India -0.5%
In Europe, at midday, London -1%. Paris -1.2%. Frankfurt -0.7%
Futures at 6:20, Dow -0.7%. S&P -0.6%. Nasdaq -0.7%. Crude -0.6% to $73.71. Gold -0.4% to $1249.70. Bitcoin -0.2% to $6333. 
Ten-year Treasury Yield -2 bps to 2.83%
 
(Source: Seeking Alpha)
 
Economic Calendar

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

S&P 500

Today is Cycle Day 2 (CD2)…Price fulfilled 3 Day Rally objective of 2743.50 in last day of  month/quarter before giving up most of session’s gains late into closing bell. Overnight trade continues to see some weakness with price responding off the 2700 roundie.

Market Bias: Short-term (neutral: correction)

CD2 Range High = 2730.50          CD2 Range Low = 2696.00          CD2 Range Avg = 32.00 

Scenario 1: IF price holds above PC (2720.75), THEN upside targets 2740 handle.

Scenario 2: IF price fails to hold PC (2720.75), THEN downside targets 2698 – 2696 range low zone.

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

HOD  ATR Range Projection: 2727.75; LOD ATR Range Projection: 2698.75; Cycle Day 1 Low: 2714.75; 3 Day Central Pivot: 2719.75; 3 Day Cycle Target: 2743.50; 10 Day Average True Range 29.25; VIX: 17.33

Click Here

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price fulfilled 3 Day Rally objectives in last day of  month/quarter before giving up most of session’s gains late into closing bell. Overnight trade continues to see some weakness with price responding off the 7000 roundie.

Market Bias: Short-term (neutral: correction)

CD2 Range High = 7097.00          CD2 Range Low = 6983.00          CD2 Range Avg = 105.00

Scenario 1: IF price holds above PC (7067.75), THEN upside targets 7124 handle.

Scenario 2: IF price fails to hold PC (7067.75), THEN downside targets 6984 – 6970.50 range low zone.

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

HOD  ATR Range Projection: 7095.75; LOD ATR Range Projection: 6984.50; Cycle Day 1 Low: 7057.75; 3 Day Central Pivot: 7051.50; 3 Day Cycle Target: 7202.50; 10 Day Average True Range: 103.50; VIX: 17.33

Click Here

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