Markets
Futures steady following big tech rebound
U.S. equity index futures are pausing for breath, with the Nasdaq nominally higher and the Dow and S&P 500 inching lower, after Wall Street snapped its tech losing streak on Wednesday.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:00 Wholesale Inventories (Preliminary)
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:00 PM Results of $23B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 1 (CD1): Finding early support at Violation Low (3298), this cycle’s rally began, pushing price higher and recovering three-fourths of prior decline. Cycle objectives were easily fulfilled with the current heightened volatility. Range was 128.50 handles, twice the 10-day average with 1.9M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having fulfilled cycle objectives, normal for CD2 would be for some ‘back n fill’ consolidation to absorb recent “down/up” price swings. Price currently is trading mid-way between 2 day value zone and as such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3375, initially targeting 3395 – 3410 zone.
2.) Price sustains an offer below 3375, initially targeting 3360 – 3345 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3423 PVA Low Edge = 3382 Prior POC = 3410
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3357; LOD ATR Range Projection: 3362; 3 Day Central Pivot: 3385; 3 Day Cycle Target: 3344; 10 Day Average True Range 62; VIX: 30
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading within prior value having fulfilled upside cycle targets. Expectation for today’s trading is for some ‘back n fill’ consolidation to absorb recent “down/up” swings. Range was 543.50 handles with 693K contracts exchanges. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11475 PVA Low Edge = 11260 Prior POC = 11275
Bull Scenario: IF Bulls sustain a bid above 11370, THEN initial upside estimate targets 11410 – 11450 zone.
Bear Scenario: IF Bears sustain an offer below 11370, THEN initial downside estimate targets 11320 – 11300 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11263; LOD ATR Range Projection: 11150; 3 Day Central Pivot: 11300; 3 Day Cycle Target: 11191; 10 Day Average True Range: 328; VIX: 30
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.
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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