Markets
U.S. equities took a pause on Tuesday, retreating from record highs after an injection of vaccine optimism, though the pullback may prove temporary as futures rose 0.3% overnight.
Source: SeekingAlpha.com
Economic Calendar
8:30 Housing Starts and Permits
10:00 Fed’s Evans Speech
10:00 Quarterly Services Report
10:30 EIA Petroleum Inventories
12:15 PM Fed’s Williams Speech
1:00 PM Results of $27B, 20-Year Bond Auction
1:20 PM Fed’s Bullard: U.S. Economy and Monetary Policy
6:00 PM Fed’s Kaplan Speech
6:00 PM Fed’s Bostic Speech
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Tuesday’s Session was Cycle Day 2 (CD2): True to form for CD2, price successfully tested CD1 Low (3586.50) for surety during morning session, at which time price rallied, fulfilling 3620 3 Day Cycle Target. Remainder of the session price oscillated around the LIS (3608) handle, creating a Neutral Session. Range was 45.75 handles on 1.240M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Cycle price objectives have been fulfilled…As such we’ll mark today as a “wild-card” day, meaning price needs to either break above 2-day value high (3620) or break below 2-day value low (3600) to reestablish a directional bias. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3620, initially targets 3630 – 3643 zone.
2.) Price sustains an offer below 3600, initially targets 3585 – 3575 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >> Cycle Day 3 (CD3)
PVA High Edge = 3517 PVA Low Edge = 3600 Prior POC = 3608
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3653; LOD ATR Range Projection: 3555; 3 Day Central Pivot: 3595; 3 Day Cycle Target: 3620; 10 Day Average True Range 67; VIX: 21
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading within prior 2-day value zone during overnight activity. Prior Range was 142.50 handles on 396k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 11898 PVA Low Edge = 11766 Prior POC = 11872
Bull Scenario: IF Bulls sustain a bid above 11990, THEN initial upside estimate targets 12025 – 12040 zone.
Bear Scenario: IF Bears sustain an offer below 11990, THEN initial downside estimate targets 11962 – 11930 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12196; LOD ATR Range Projection: 11743; 3 Day Central Pivot: 11962; 3 Day Cycle Target: 11943; 10 Day Average True Range: 280; VIX: 22
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