Trade Strategy 7.6.20

Markets

The latest stock party started in Asia overnight, where China’s Shanghai Composite jumped 5.7% to record its largest one-day gain since 2015. Over in Europe, the Euro Stoxx 50 climbed 2%, while S&P 500 futures are ahead by 1.3% in the U.S., building on a strong end to last week following an unexpectedly strong jobs report.

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

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

Economic Calendar

9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
12:30 PM TD Ameritrade IMX

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

S&P 500 (ES)

Prior Session was Cycle Day 1 (CD1): Pre-Holiday shortened session with most traders away from their trading stations had price drifting lower on sub-par volumes. Cycle Day 1 Low was established at 3105.75.

Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price opened GLOBEX with a higher gap and has continued to rally throughout the overnight session, currently trading near highs and at 3165 CD2 Penetration Level. We then have two scenarios to consider for today’s trading.

1.) Price sustains a bid above 3165, initially targeting 3172.75 (PH) with 3 Day Cycle Target 3182.

2.) Price sustains an offer below 3165 initially targeting 3156 – 3148 zone.

P -VA High = 3130       P – VA Low = 3115        P – POC = 3120

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

HOD  ATR Range Projection: 3176; LOD ATR Range Projection: 3104; 3 Day Central Pivot: 3113; 3 Day Cycle Target: 3182; 10 Day Average True Range  55; VIX: 28

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2) Price has rallied higher during GLOBEX Session, currently trading near overnight high and fulfilling 10478 CD2 Penetration Level. We have two scenarios to consider for today’s trading:

P – VA High = 10370       P – VA Low = 10333         P – POC = 10350

Bull Scenario: IF Bulls sustain a bid above 10478, THEN initial upside estimate targets 10505 upwards toward 10584 3 Day Cycle Target.

Bear Scenario: IF Bears sustain an offer below 10478, THEN initial downside estimate targets 10436 – 10420 zone.

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

HOD  ATR Range Projection: 10535; LOD ATR Range Projection: 10293; 3 Day Central Pivot: 10298; 3 Day Cycle Target: 10584; 10 Day Average True Range: 194; 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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