Markets
U.S. stock index futures are pointing to a muted open for a second consecutive session despite a jump in U.S. consumer spending seen Monday that propelled U.S. shares to a record high. The S&P 500 topped its intraday record of 2,940.91 set on Sept. 21 with a session high of 2,949.52. Investor jitters have calmed since the beginning of the year as the U.S. Federal Reserve turned dovish. Traders will see the next stage in that process today as the central bank begins its next two-day meeting. Source: Seeking Alpha
In Asia, Japan closed. Hong Kong -0.7%. China +0.5%. India -0.1%.
In Europe, at midday, London -0.2%. Paris -0.2%. Frankfurt flat.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +1.3% to $64.35. Gold +0.4% to $1286.90. Bitcoin +1.1% to $5199.
Ten-year Treasury Yield flat at 2.53%
Economic Calendar
FOMC meeting begins
8:30Employment Cost Index
8:55Redbook Chain Store Sales
9:00S&P Corelogic Case-Shiller Home Price Index
9:45Chicago PMI
10:00Consumer Confidence
10:00Pending Home Sales
3:00 PMFarm Prices
***PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 2 (CD2)…Price tested Cycle Day 1 Low (2937.75) during overnight trade and has bounced back currently trading near prior settlement (2943.25). Should price continue to hold firm above CD1 Low, then this current cycle’s rally can develop ahead of Fed’s Policy Announcement tomorrow.
CD2 Range High = 2958.50 CD2 Range Low = 2920.00 CD2 Range Avg = 26.50
Scenario 1: IF Bulls hold bid above 2943.25, THEN initial upside potential targets 2948 – 2953 zone. Conversion of this zone to support further projects 2960.50 – 2973.75 CD2 Penetration Range Zone.
Scenario 2: IF Bears hold offer below 2943.25, THEN initial downside objective targets retest of 2937.75 CD1 Low. Lower CD2 Violation Range Zone projects 2925.50 – 2923.50 zone.
Range Projections and Key Levels (ES) June 2019 (M) Contract
HOD ATR Range Projection: 2953.50; LOD ATR Range Projection: 2926.00; 3 Day Central Pivot: 2934.00; 3 Day Cycle Target: 2965.00; 10 Day Average True Range 17.50; VIX: 13.00
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price tested Cycle Day 1 Low (7779.00) during overnight trade and has bounced back currently trading near prior settlement (7806.75). Should price continue to hold firm above CD1 Low, then this current cycle’s rally can develop ahead of Fed’s Policy Announcement tomorrow.
CD2 Range High = 7864.50 CD2 Range Low = 7753.00 CD2 Range Avg = 85.50
Scenario 1: IF Bulls hold bid above 7806.75, THEN initial upside potential targets 7817.25 – 7824.25 3 Day Central Pivot Zone.
Scenario 2: IF Bears hold offer below 7806.75, THEN initial downside objective targets 7779.00 – 7771.50 CD1 Low Violation Zone.
Range Projections and Key Levels (NQ) June 2019 (M) Contract
HOD ATR Range Projection: 7842.00; LOD ATR Range Projection: 7746.50; 3 Day Central Pivot: 7820.75; 3 Day Cycle Target: 7874.00; 10 Day Average True Range: 63.00; VIX: 13.00
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.
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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