In Asia, Japan -1.1%. Hong Kong -0.9%. China -0.3%. India -0.3%.
In Europe, at midday, London flat. Paris +0.5%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.5%. Crude +0.8% to $66.10. Gold +0.2% to $1359. Bitcoin -1.6% to $11220.
Ten-year Treasury Yield -1 bps to 2.63%
Economic Calendar
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 New Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P 500 (ES)
Today is Cycle Day 2 (CD2)…Price tested upper penetration level (2855), reversed and tested average decline (2828) outlined in prior DTS Briefing 1.24.18. Part of this cycle’s rally is now in-place with potential to reach average 3 Day Rally zone between 2851 – 2855.
Scenario 1: IF price clears and converts 2848 Open Range Midpoint, THEN targets between 2850 – 55 zone.
Scenario 2: IF price violates and converts VPOC (2840), THEN lower test of CD1 Low (2825.50) comes into play.
Range Projections and Key Levels (ES)
HOD ATR Range Projection: 2856.00; LOD ATR Range Projection: 2829.31; Cycle Day 1 Low: 2825.50; 3 Day Central Pivot: 2834.50; 3 Day Cycle Target: 2851.00; 10 Day Average True Range: 21.03; VIX: 11.26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Similar to ES, NAZ tagged upper penetration and lower violation levels, at which time this cycle’s rally began. Average rally objective (6945.80) is in-place, with additional upside measuring 6979.87. Possible cycle range high = 6970 – 90 zone.
Scenario 1: IF price clears and converts PC (6973), THEN upside targets 6990 – 92 zone.
Scenario 2: IF price violates and converts VPOC (6946), THEN downside targets 6914, followed by 6894.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6993.93; LOD ATR Range Projection: 6900.00; Cycle Day 1 Low: 6888.00; 3 Day Central Pivot: 6931.75; 3 Day Cycle Target: 6979.87; 10 Day Average True Range: 72.43; VIX: 11.26
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.
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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