Trade Strategy 9.1.20

Markets

Overnight, S&P 500 and Dow futures rose 0.3% and 0.1%, respectively, though contracts tied to the Nasdaq powered ahead by 1.1%, led by outsized gains for Apple (AAPL) and Tesla (TSLA). Zoom Video (NASDAQ:ZM) also brought cocktails to the party, jumping 27% AH after quarterly revenue more than quadrupled due to stay-at-home trends, while the video-conferencing company raised its sales outlook. The results cemented the Nasdaq’s best monthly performance since 2000, while the S&P recorded one of its best Augusts since the 1980s.

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

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

Economic Calendar

8:55 Redbook Chain Store Sales
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
1:00 PM Fed’s Brainard Speech

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 notched another all-time high before selling back down into the close. Market on Close Sell $2.2 billion capped the session. Range was 34.50 handles and 1.3M contracts exchanged.

Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Price has recovered two-thirds of prior session decline, currently trading mid-range. Normal expectation for CD1 is some magnitude decline with average measuring 3470.

Price is back within prior value, As such we have two scenarios to consider for today’s trading.

1.) Price sustains a bid above 3504, initially targeting 3514 – 3520 zone.

2.) Price sustains an offer below 3504, initially targeting 3495 – 3490 zone.

P -VA High = 3508       P – VA Low = 3497        P – POC = 3504

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

HOD  ATR Range Projection: 3513; LOD ATR Range Projection: 3466; 3 Day Central Pivot: 3495; 10 Day Average True Range  28; VIX: 26

Nasdaq 100 (NQ)

Today is Cycle Day (CD1) Price is trading above prior high and above prior value fulfilling D-Level Money Box Zone (12213 – 12233) objective. As such we have two scenarios to consider for today’s trading.

P – VA High = 12098       P – VA Low = 11996         P – POC = 12037

Bull Scenario: IF Bulls hold bid above 12213, THEN initial upside estimate targets 12248 – 12259 zone.

Bear Scenario: IF Bears hold offer below 12213, THEN initial downside estimate targets 12188 – 12165 zone.

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

HOD  ATR Range Projection: 12264; LOD ATR Range Projection: 11954; 3 Day Central Pivot: 12002; 10 Day Average True Range: 171; VIX: 26

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


Leave a Reply