Markets
Futures point to another vaccine rally
Hopes for a continuing economic recovery saw cyclicals lead the advance for futures overnight as the U.S. gears up for a historic vaccine rollout. Dow +0.8%; S&P 500 +0.6%; Nasdaq +0.4%.
Source: SeekingAlpha.com
Economic Calendar
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S&P 500
Prior Session was Cycle Day 2 (CD2): Textbook Taylor CD2 as price successfully tested CD1 Low during RTH Session, at which time this cycle’s rally took firm hold, closing with a firm bid. Range was 46.25 handles on 945K contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price gapped higher during Globex Session, above prior session high (3667), easily fulfilling 3 Day Cycle Objective (3678). Bulls have dominant control above prior range. As such there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3675, initially targets 3685 – 3690 zone.
2.) Price sustains an offer below 3675, initially targets 3665 – 3660 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3651 PVA Low Edge = 3633 Prior POC = 3644
Range Projections and Key Levels (ES) March 2021 (H) Contract
HOD ATR Range Projection: 3703; LOD ATR Range Projection: 3650; 3 Day Central Pivot: 3660; 3 Day Cycle Target: 3678; 10 Day Average True Range 35; VIX: 22
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading above prior value zone during overnight activity. Prior Range was 179 handles on 260k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12600 PVA Low Edge = 12530 Prior POC = 12563
Bull Scenario: IF Bulls sustain a bid above 12420, THEN initial upside estimate targets 12442 – 12464 zone.
Bear Scenario: IF Bears sustain an offer below 12420, THEN initial downside estimate targets 12402 – 12380 zone.
Range Projections and Key Levels (NQ) March 2021 (H) Contract
HOD ATR Range Projection: 12560; LOD ATR Range Projection: 12282; 3 Day Central Pivot: 12378; 3 Day Cycle Target: 12437; 10 Day Average True Range: 172; 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