Trade Strategy 9.28.18

Markets
 
In Asia, Japan 1.36%. Hong Kong +0.26%. China +1.06%. India -0.30%
In Europe, at midday, London -0.19%. Paris -0.40%. Frankfurt -0.72%
Futures at 6:20, Dow -0.10%. S&P -0.09%. Nasdaq -0.12%. Crude +0.19%to $72.26. Gold -0.03% to $1,187. Bitcoin +2.76% to $6.656. 
Ten-year Treasury Yield -1.8bps to 3.037%.
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Personal Income and Outlays
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
4:45 PM Fed’s Williams: Economic Outlook

S&P 500

Today is Cycle Day 3 (CD3)…Price rallied early in prior session reaching cycle range projections, only to give it all back bay the closing bell. Overnight trade is following through with continued selling approaching test of 2907.50 CD1 Low. 

CD3 Range High = 2932.75          CD3 Range Low = 2901.50          CD3 Range Avg = 21.50 

Scenario 1: IF price holds bid above 2918, THEN upside targets 2923 – 2925 zone.

Scenario 2: IF price holds offer below 2918, THEN downside targets 2912, followed by 2908 handle. Extension zones below are layered and measure down to 2898 handle.

Range Projections and Key Levels (ES) December (Z) Contract

HOD  ATR Range Projection: 2929.75; LOD ATR Range Projection: 2905.25; Cycle Day 1 Low: 2907.50; 3 Day Central Pivot: 2921.50; 3 Day Cycle Target: 2937.50; 10 Day Average True Range 19.00; VIX: 12.85

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Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…NAZ continues to exhibit relative strength trading near weekly highs and above 3 Day Central Pivot Zones. Violation and conversion below CD1 Low (7577.50) would call for a re-assessment.

CD3 Range High = 7674.50         CD3 Range Low = 7584.50          CD3 Range Avg = 90.00

Scenario 1: IF price holds bid above 7645, THEN upside targets 7672 handle.

Scenario 2: IF price holds offer below 7645, THEN downside targets 7616 – 7612 3 Day Central Pivot Zone. Conversion of this zone opens door to retest 7588 – 7578 CD1 Low Zone.

Range Projections and Key Levels (NQ) December (Z) Contract

HOD  ATR Range Projection: 7703.00; LOD ATR Range Projection: 7588.50; Cycle Day 1 Low: 7577.50; 3 Day Central Pivot: 7614.00; 3 Day Cycle Target: 7694.00; 10 Day Average True Range: 86.00; VIX: 12.85

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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