Markets
Following a big turnaround on Friday that resumed a selloff on Wall Street, markets went into another tailspin overnight as a Senate vote on a coronavirus rescue package failed to gain sufficient traction. Futures have now trimmed their losses, with the S&P 500 down 3.50% (as of this writing)
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:30 Chicago Fed National Activity Index
https://www.investing.com/economic-calendar/
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S&P 500
Price across indexes were locked LIMIT DOWN yet again as markets are bracing for sharp decline for RTH Open.
Today is a Cycle Day 3 (CD3)…Markets opened GLOBEX Session with a gap limit down (2174), jumped higher, then oscillated back n forth off limit level. Pre-RTH price is trading freely near 2215 level, but still below CD1 Low (2275).
Bull’s key objective for today is to recover CD1 Low (2275), to fulfill Positive 3 Day Cycle Statistic.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 72 and ATR (3) 236 handles.
****IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
Please review the NYSE Circuit Breaker Rules in the section below.
Stock index futures in the U.S. plunged the 5% limit overnight, triggering limit-down rules, meaning only transactions at or above that threshold are allowed. Once the market opens, NYSE circuit breakers will work like this: trading halts for 15 minutes if the S&P 500 falls 7% at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13%. If the decline hits 20%, markets will close for the day
PVA High Edge = 2430 PVA Low Edge = 2340 Prior POC = 2375
Bull Scenario: IF Bulls hold bid above 2200, THEN initial upside estimate targets 2250- 2240 zone.
Bear Scenario: IF Bears hold offer below 2200, THEN initial downside estimate targets 2180 – 2175 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2388.00; LOD ATR Range Projection: 2025.00; 3 Day Central Pivot: 2370.00; 3 Day Cycle Target: 2335.00; 10 Day Average True Range 200; VIX: 72
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)… NQ opened GLOBEX Session with a gap limit down (6628.75), jumped higher, then oscillated back n forth off limit level. Pre-RTH price is trading freely near 6780 level, but still below CD1 Low (6874.25).
Bull’s key objective for today is to recover CD1 Low (6874.25), to fulfill Positive 3 Day Cycle Statistic.
PVA High Edge = 7468 PVA Low Edge = 7180 Prior POC = 7295
Bull Scenario: IF Bulls hold bid above 6750, THEN initial upside estimate targets 6840 – 6850 zone.
Bear Scenario: IF Bears hold offer below 6750, THEN initial downside estimate targets 6700 – 6650 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 6898.00; LOD ATR Range Projection: 6605; 3 Day Central Pivot: 6587.00; 3 Day Cycle Target: 7100; 10 Day Average True Range: 582.00; VIX: 72
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