Markets
S&P futures rise 0.7%, Nasdaq futures +0.9%, and the Dow pushes 0.8% higher. 10-year Treasury slips, pushing yield up almost 1 basis point to 0.64%. In Europe, the Stoxx Europe 600 Index rises 1.7%, U.K.’s FTSE 100 Index adds 1.6%, Germany’s DAX gains 2.1% and France’s CAC climbs 2.2%. In Asia, Hong Kong’s Hang Seng Index closed up 1.7%, Japan’s Nikkei 225 rose 0.3%, and the Shanghai Composite increased 0.2%.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Chicago FedNational Activity Index
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): 3 Day Positive Cycle Statistics were fulfilled as price closed near high of day. Range of 39.50 handles and 1.123K contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is continuing its rally from last week as new all-time highs are seemingly becoming a daily event. During overnight and pre-RTH trade action price has fulfilled 3418 – 3421 CD1 target zone.
Price is currently trading well above prior value, so then we have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3412, initially targeting 3420 – 3425 zone.
2.) Price sustains an offer below 3412, initially targeting 3400 – 3395 zone.
P -VA High = 3390 P – VA Low = 3375 P – POC = 3386
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3424; LOD ATR Range Projection: 3391; 3 Day Central Pivot: 3377; 10 Day Average True Range 30; VIX: 22.50
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price has fulfilled initial CD1 upside objective and is currently trading above prior value. As such we have two scenarios to consider for today’s trading.
P – VA High = 11561 P – VA Low = 11483 P – POC = 11537
Bull Scenario: IF Bulls hold bid above 11650, THEN initial upside estimate targets 11670 – 11675 zone.
Bear Scenario: IF Bears hold offer below 11650, THEN initial downside estimate targets 11625 – 11620 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11747; LOD ATR Range Projection: 11502; 3 Day Central Pivot: 11422; 10 Day Average True Range: 180; VIX: 22.50
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