Trade Strategy 8.13.19

Markets

U.S. stock index futures are under pressure for yet another day as risk-off sentiment takes hold of the markets. Hong Kong riots are spiraling, the PBOC set the yuan weaker than the previous session and there are fears of another debt crisis in Argentina. The grim backdrop saw futures tied to the Dow Jones Industrial Average tick down 0.5% following the index’s almost 400-point drop on Monday, while S&P 500 futures declined 0.5% and the Nasdaq fell 0.7%, respectively.

In Asia, Japan -1.1%. Hong Kong -2.1%. China -0.6%. India -1.7%. 
In Europe, at midday, London -0.5%. Paris -0.5%. Frankfurt -0.9%. 
Futures at 6:20, Dow -0.5%. S&P -0.5%. Nasdaq -0.7%. Crude -0.2% to $54.83. Gold +1.8% to $1543.80. Bitcoin -1.2% to $11226. 
Ten-year Treasury Yield -1 bps to 1.64%

Source: Seeking Alpha https://seekingalpha.com

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

8:30Consumer Price Index
8:55Redbook Chain Store Sales

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price is challenging Cycle Day 1 Low (2872.50) pre-RTH. Failure to hold bid opens trap door for further downside as “risk-off” theme builds momentum. Bulls MUST convert 2890 to upper support to squelch the current slide.

CD2 Range High = 2890.00       CD2 Range Low = 2855.00    CD2 Range Avg = 34.75

Scenario 1: IF Bulls hold bid above 2880, THEN initial upside potential targets 2890 – 2895 zone.

Scenario 2: IF Bears hold offer below 2880, THEN initial downside objective targets 2860 – 2855 zone.

Range Projections and Key Levels (ES) September 2019 (U) Contract

HOD  ATR Range Projection: 2915.00; LOD ATR Range Projection: 2840.00; 3 Day Central Pivot: 2910.00; 3 Day Cycle Target: 2915.00; 10 Day Average True Range 49.00: VIX: 21.23

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is challenging Cycle Day 1 Low (7534.75) pre-RTH. Failure to hold bid opens trap door for further downside as “risk-off” theme builds momentum. Bulls MUST convert 7605 to upper support to squelch the current slide.

CD2 Range High = 7633.00          CD2 Range Low = 7515.00          CD2 Range Avg = 120.00

Scenario 1: IF Bulls hold bid above 7550, THEN initial upside potential targets 7585 – 7600 zone.

Scenario 2: IF Bears hold offer below 7550, THEN initial downside objective targets 7535 – 7515 zone.

Range Projections and Key Levels (NQ) September 2019 (U) Contract

HOD  ATR Range Projection: 7669.00; LOD ATR Range Projection: 7440.00; 3 Day Central Pivot: 7644.00; 3 Day Cycle Target: 7685.00; 10 Day Average True Range: 155.00; VIX: 21.23

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