Trade Strategy 5.29.18

Markets
 
In Asia, Japan -0.6%. Hong Kong -1%. China -0.5%. India -0.6%
In Europe, at midday, London -1.2%. Paris -1.2%. Frankfurt -1.3%
Futures at 6:20, Dow -0.7%. S&P -0.7%. Nasdaq -0.6%. Crude -1.4% to $66.94. Gold flat at $1303.50. Bitcoin +0.6% to $7149. 
Ten-year Treasury Yield -7 bps to 2.86%
 
(Source: Seeking Alpha)
 
Economic Calendar

00:40 Fed’s Bullard: U.S. Monetary and Economic Policy
9:00 S&P Corelogic Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:30 Dallas Fed Manufacturing Survey

S&P 500

Today is Cycle Day 2 (CD2)…Markets are already deep in the hole as traders return from long holiday weekend. Price will need to find stabilization within 2696 – 2700 zone during RTH Session.

Average Range for CD2 = 38.75

Scenario 1: Bulls will need to recover and convert 2702 handle to support to stem further weakness. IF successful, THEN target 2712 handle.

Scenario 2: Bears have an opening to press to force long liquidation below 2696 – 93 zone. IF successful, THEN downside extreme measures 2685 handle.

HOD  ATR Range Projection: 2714.00; LOD ATR Range Projection: 2700.00; Cycle Day 1 Low: 2718.25; 3 Day Central Pivot: 2721.50; 3 Day Cycle Target: 2735.50; 10 Day Average True Range 18.75; VIX: 15.60

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Markets are already deep in the hole as traders return from long holiday weekend. Price will need to find stabilization within 6900 – 6930 zone during RTH Session.

Average Range for CD2 = 51.00

Scenario 1: Bulls will need to recover and convert 6930 handle to support to stem further weakness. IF successful, THEN target 6960 handle.

Scenario 2: Bears have an opening to press to force long liquidation below 6910 – 6900 zone. IF successful, THEN downside extreme measures 6865 handle.

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6964.25; LOD ATR Range Projection: 6925.50; Cycle Day 1 Low: 6969.75; 3 Day Central Pivot: 6966.25; 3 Day Cycle Target: 6924.00; 10 Day Average True Range: 69.23; VIX: 15.60

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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


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