Trade Strategy 8.21.18

Markets
 
The S&P 500 will tie the record for the longest U.S. bull market in history today at nearly 3,500 days, rising more than 320% since March 9, 2009. It’s a record few would have predicted when stocks struggled to find their footing after a 50% plunge during the financial crisis. There is still no shortage of bearish warnings out there as analysts debate the future, but many investors continue to see plenty of gas left in the tank for equities.
 
In Asia, Japan +0.1%. Hong Kong +0.6%. China +1.3%. India flat. 
In Europe, at midday, London -0.4%. Paris +0.7%. Frankfurt +0.7%
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +0.1% to $65.47. Gold +0.5% to $1200.80. Bitcoin +3% to $6441. 
Ten-year Treasury Yield +2 bps to 2.84%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

S&P 500

Today is Cycle Day 2 (CD2)…Prior Session was a CD1. Price did produce a decline albeit very shallow with sub-par trader participation. As such, bulls remain in control and current rally is unfolding during overnight session targeting 2870 handle.

CD2 Range High = 2878.00          CD2 Range Low = 2842.00         CD2 Range Avg = 24.25

Scenario 1: IF price clears and converts 2860.75, THEN upside extension targets 2870 – 2873 handle zone..

Scenario 2: IF price holds offer below 2856.00, THEN downside targets 2847.50 3D Central Pivot.

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

HOD  ATR Range Projection: 2875.00; LOD ATR Range Projection: 2843.50; Cycle Day 1 Low: 2850.25; 3 Day Central Pivot: 2847.50; 3 Day Cycle Target: 2877.00; 10 Day Average True Range 21.50; VIX: 12.38

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price did produce a CD1 normal decline, but was also shallower than historical averages for NQ. Late session reversal off lows has continued to rally in overnight trade fulfilling 7404.50 Average Cycle Rally. 

CD2 Range High = 7459.50         CD2 Range Low = 7358.50          CD2 Range Avg = 90.50

Scenario 1: IF price holds bid above 7380.25, THEN targets 7404.50 Average Cycle Rally. 

Scenario 2: IF price holds offers below 7380.25, THEN downside targets 7358.50 – 7351.50 zone.

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

HOD  ATR Range Projection: 7447.00; LOD ATR Range Projection: 7332.50; Cycle Day 1 Low: 7351.50; 3 Day Central Pivot: 7383.25; 3 Day Cycle Target: 7404.50; 10 Day Average True Range: 78.00; VIX: 12.38

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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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