Trade Strategy 7.2.20

Markets

U.S. stock indexes futures rose as much as 1% overnight as investors look ahead to two jobs reports for clarity on the economic situation.

Source: SeekingAlpha.com

Economic Calendar

8:30 Initial Jobless Claims
8:30 Non-farm payrolls
8:30 International Trade
10:00 Factory Orders
10:30 EIA Natural Gas Inventory
1:00 PM Baker-Hughes Rig Count

Forecasts for the jobs report are wide-ranging, but most economists predict 3M jobs were created in June, up from the 2.5M added in May

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

The Fed’s monetary policy-setting arm doesn’t see the recovery in consumer spending being “particularly rapid beyond this year” and noted a need for “highly accommodative monetary policy for some time,” according to the minutes of the June 9-10 meeting.

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

S&P 500

Prior Session was Cycle Day 2 (CD2): It was a normal CD2 session as price consolidated throughout the session absorbing and refueling recent gains.

Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price is trading higher pre-RTH ahead of the all-important Jobs Report. Initial cycle statistical objectives have been fulfilled, so with Bulls in control ahead of the long July 4th weekend, path of least resistance remains higher. As such, we have two scenarios to consider for today’s session:

1.) Price sustains a bid above 3118, initially targeting 3125 – 3133 zone.

2.) Price sustains an offer below 3118 targeting 3112 – 3104 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3112       PVA Low Edge = 3095         Prior POC = 3104

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

HOD  ATR Range Projection: 3155; LOD ATR Range Projection: 3049; 3 Day Central Pivot: 3064; 3 Day Cycle Target: 3145; 10 Day Average True Range  58; VIX: 28

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has fulfilled Positive 3 Day Rally (10293) as price is continues to have a firm bid pre-RTH. As such, we have two scenarios to consider for today’s session:

PVA High Edge = 10250           PVA Low Edge = 10110         Prior POC = 10145

Bull Scenario: IF Bulls hold bid above 10310, THEN initial upside estimate targets 10342 – 10374 zone.

Bear Scenario: IF Bears hold offer below 10310, THEN initial downside estimate targets 10264 – 10250 zone.

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

HOD  ATR Range Projection: 10447; LOD ATR Range Projection: 10079; 3 Day Central Pivot: 10067; 3 Day Cycle Target: 10293; 10 Day Average True Range: 200; VIX: 28

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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