Trade Strategy 8.8.19

Markets

Following a bout of market volatility, stocks across the world are attempting to stabilize amid stronger-than-expected Chinese trade data that eased concerns about a sharp deterioration in the global economic outlook. U.S. stocks whipsawed yesterday, with the DJIA swinging more than 600 points at its widest span, while Chicago Fed President Charles Evans said trade headwinds could justify additional rate cuts. Ahead of the open, the Dow and S&P 500 are up 0.4%, while the Nasdaq is ahead by 0.7%. Bond yields have also rebounded from significant lows, with the 10-year advancing 4 bps to 1.73% after tumbling as low as 1.53% on Wednesday

Crude comeback

Saudi Arabia has reportedly phoned other oil producers to discuss possible policy responses following crude’s 4.7% plunge on Wednesday to seven-month lows. The kingdom, which has already cut production more than required under the OPEC+ agreement, said it won’t tolerate a continued slide in prices and is considering all options. The U.S. benchmark crude rose 3.2% to $52.72/bbl after the Saudi efforts were revealed. Planned OPEC+ gatherings are also set for the week starting Sept. 9 in Abu Dhabi

In Asia, Japan +0.4%. Hong Kong +0.5%. China +0.9%. India +1.7%. 
In Europe, at midday, London +0.2%. Paris +1.3%. Frankfurt +0.9%. 
Futures at 6:20, Dow +0.4%. S&P +0.4%. Nasdaq +0.7%. Crude +2.3% to $52.28. Gold -0.8%to $1508.10. Bitcoin +1.5% to $11848. 
Ten-year Treasury Yield +4 bps to 1.73%

Source: Seeking Alpha https://seekingalpha.com

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

8:30Initial Jobless Claims
10:00Wholesale Trade
10:30EIA Natural Gas Inventory
1:00 PMResults of $19B, 30-Year Note Auction
4:30 PMMoney Supply
4:30 PMFed Balance Sheet

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price has rallied off deep extreme low and attempting to stabilize and find balance at upper end of 5-day range. Expectation remains for wide intra-session swings as the current rhythms are multiples of the 10-handle rule. Cycle objectives have been fulfilled, so anything goes for trade action. Stay nimble, be patient for the best structural setups and manage risk accordingly.

CD2 Range High = 2895.00       CD2 Range Low = 2872.00    CD2 Range Avg = 34.00

Scenario 1: IF Bulls hold bid above 2880, THEN initial upside potential targets 2895 – 2900 zone.

Scenario 2: IF Bears hold offer below 2880, THEN initial downside objective targets 2870 – 2865 zone.

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

HOD  ATR Range Projection: 2922.00; LOD ATR Range Projection: 2845.00; 3 Day Central Pivot: 2956.00; 3 Day Cycle Target: 2863.00; 10 Day Average True Range 51.14: VIX: 19.50

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has rallied off deep extreme low and attempting to stabilize and find balance at upper end of 5-day range.

CD2 Range High = 7600.00          CD2 Range Low = 7552.00          CD2 Range Avg = 118.00

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 7550 – 7535 zone.

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

HOD  ATR Range Projection: 7694.00; LOD ATR Range Projection: 7444.00; 3 Day Central Pivot: 7475.00; 3 Day Cycle Target: 7354.00; 10 Day Average True Range: 167.77; VIX: 19.50

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