Markets
Stocks are set to end the week on a high note after four of the biggest tech stocks – Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Alphabet (GOOG, GOOGL) – reported quarterly results that beat high expectations.
Source: SeekingAlpha.com
Economic Calendar
8:30 Personal Income and Outlays
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): Early violation and subsequent recovery back above CD1 Low (3204.5) set up a strong Cycle BUY SIGNAL which carried price higher throughout the session, closing near high of day. Range was 74 handles on 1.9M contracts traded.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price has pulled back from PH (3269) but maintain firm bid pre-RTH. We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3257, initially targeting 3270 – 3275 zone.
2.) Price sustains an offer below 3257, initially targeting 3245 – 3240 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3245 PVA Low Edge = 3218 Prior POC = 3235
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3230; LOD ATR Range Projection: 3133; 3 Day Central Pivot: 3235; 3 Day Cycle Target: 3300; 10 Day Average True Range 35; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is maintaining firm bid pre-RTH following solid earnings reports. 3 Day Cycle Objective has been fulfilled and exceeded. Today we have two scenarios to consider:
PVA High Edge = 10731 PVA Low Edge = 10573 Prior POC = 10693
Bull Scenario: IF Bulls sustain a bid above 10885, THEN initial upside estimate targets 10924 – 10939 zone with extended CD3 Penetration Level measuring 10995.
Bear Scenario: IF Bears sustain an offer below 10885, THEN initial downside estimate targets 10842 – 10800 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10723; LOD ATR Range Projection: 10677; 3 Day Central Pivot: 10670; 3 Day Cycle Target: 10843; 10 Day Average True Range: 220; VIX: 25
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.
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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