Markets
Stock futures are mixed during overnight trade as concerns mount over a V-shaped economic recovery and economists warn that the government and Fed will need to provide additional stimulus.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
10:30 EIA Petroleum Inventories
1:00 PM Results of $17B, 30-Year Note Auction
2:00 PM FOMC minutes
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
Price across indexes are mixed during GLOBEX Session with Asia & Euro in negative territory, while US Markets are holding marginal gains.
***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.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 46 and ATR (10) 128 handles. Average Rotation: 25 handles.
S&P 500
Tuesday’s Session was Cycle Day 2 (CD2): Bullish Open Gap propelled price higher to the approximately 50% retracement zone from daily “peak–to-trough”, at which time price oscillated widely throughout the session. Failure to hold 2710, which was our stated Key “Line-In-Sand” price level, opened the trap-door for afternoon decline, as sellers took profits and most likely established newly minted short positions.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): 3 Day Cycle Objectives have already been fulfilled and exceeded. Price is trading above CD2 RTH Low (2634.75). Downside Violation Levels measure: 2610…2601 – 2588.25 zone. IF price holds prior low, THEN initial upside objective measures 2670 – 2680 zone
We’ll view today as a “wild-card” day with Positive 3 Day Cycle Statistic in-place and currently balanced; Price could move either direction.
PVA High Edge = 2740 PVA Low Edge = 2680 Prior POC = 2730
Bull Scenario: IF Bulls hold bid above 2640, THEN initial upside estimate targets 2670 – 2680 zone.
Bear Scenario: IF Bears hold offer below 2640, THEN initial downside estimate targets 2630 – 2620 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2743; LOD ATR Range Projection: 2558; 3 Day Central Pivot: 2586; 3 Day Cycle Target: 2576; 10 Day Average True Range 127; VIX: 46
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is holding bid above prior low (7948) in relative quiet overnight trade. Initial boundaries measure 8140 – 7950.
PVA High Edge = 8232 PVA Low Edge = 8048 Prior POC = 8140
Bull Scenario: IF Bulls hold bid above 8060, THEN initial upside estimate targets 8120 – 8140 zone.
Bear Scenario: IF Bears hold offer below 8060, THEN initial downside estimate targets 8000 – 7950 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8298; LOD ATR Range Projection: 7800; 3 Day Central Pivot: 7836; 3 Day Cycle Target: 7815; 10 Day Average True Range: 365; VIX: 46
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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