Markets
U.S. markets on Mondayrecovered most of their lost ground after a steep initial plunge, as stocks stabilized amid hopes that a trade agreement could get back on track. China has confirmed that Vice Premier Liu He will visit the U.S. on May 9-10 ahead of a Friday deadline President Trump has set for an increase in tariffs, after Washington accused Beijing of “reneging” on its trade promises. Dow futures are down 91 points, with the S&P 500 and Nasdaq pointing to opening losses of 0.4%, while fears appeared to be waning in Europe and Asia, where stocks were trading mixed.
In Asia, Japan -1.6%. Hong Kong +0.5%. China +0.7%. India -0.8%.
In Europe, at midday, London -1%. Paris -0.6%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.4%. Crude -0.6% to $61.89. Gold -0.1% to $1282.60. Bitcoin +4.8% to $5901.
Ten-year Treasury Yield -2 bps to 2.48%
Source: Seeking Alpha
7:00Fed’s Kaplan Speech
8:55Redbook Chain Store Sales
10:00Job Openings and Labor Turnover Survey
1:00 PMResults of $38B, 3-Year Note Auction
3:00 PMConsumer Credit
***New: PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2911.00 (FULFILLED). Average Range for CD1 is 24.25 handles. Odds of decline > 10 handles = 72% Odds of decline > 20 = 43%
CD1 Range High = 2934.50 CD1 Range Low = 2906.25 CD1 Range Avg = 24.25
Scenario 1: IF Bulls hold bid above 2910, THEN initial upside targets 2925 – 2930 zone.
Scenario 2: IF Bears hold offer below 2910, THEN initial downside targets 2906.25 – 2900 zone.
Range Projections and Key Levels (ES) June 2019 (M) Contract
HOD ATR Range Projection: 2940.00; LOD ATR Range Projection: 2900.00; 3 Day Central Pivot: 2922.25 3 Day Cycle Target: 2938.25; 10 Day Average True Range 29.63; VIX: 16.68
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 7738.50 (FULFILLED). Average Range for CD1 is 78.00 handles. Odds of decline > 20 handles = 74% Odds of decline > 25 = 65%
CD1 Range High =7813.00 CD1 Range Low = 7726.00 CD1 Range Avg = 78.00
Scenario 1: IF Bulls hold bid above 7738.50, THEN initial upside targets 7790.00 – 7803.50 3 Day Cycle Target (FULFILLED).
Scenario 2: IF Bears hold offer below 7738.50, THEN initial downside targets 7726 – 7715 zone.
Range Projections and Key Levels (NQ) June 2019 (M) Contract
HOD ATR Range Projection: 7845.00; LOD ATR Range Projection: 7694.00; 3 Day Central Pivot: 7770.00; 3 Day Cycle Target: 7803.50; 10 Day Average True Range: 110.00; VIX: 16.68
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