Trade Strategy 8.16.18

Markets
 
Crude oil prices are slightly lower after yesterday’s shock surge in U.S. stockpiles. Total petroleum inventories rose a strong 17.4M barrels in the EIA report, just as new concerns over global demand cropped up. Analysts note that a perky U.S. dollar is also adding downward pressure to oil prices. WTI crude oil futures -0.03% to $64.99/bbl at last check. Brent crude +0.17% to $70.88/bbl.
 
In Asia, Japan -0.05%. Hong Kong -0.82%. China -0.66%. India -0.42%
In Europe, at midday, London +0.57%. Paris +0.45%. Frankfurt +0.29%
Futures at 6:20, Dow +0.46%. S&P +0.39%. Nasdaq +0.60%. Crude -0.03% to $64.99. Gold +0.12% to $1,186.20. Bitcoin -0.1% to $6,393. 
Ten-year Treasury Yield +2.6 bps to 2.877%.
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

S&P 500

Today is Cycle Day 2 (CD2)…Prior Session was a CD1. Markets decline hard and surpassed their Violation levels only to reverse at their Violation Standard Deviation lows (2804.25). Overnight trading is continuing the cycle rally which targets 2840 – 43 zone.

CD2 Range High = 2844.75          CD2 Range Low = 2811.50         CD2 Range Avg = 24.75

Scenario 1: IF price holds bid above 2822.50, THEN upside targets 2833.50 – 2843.50 zone.

Scenario 2: IF price holds offer below 2822.50, THEN dowside targets 2814.50 – 2812.50 zone.

Range Projections and Key Levels (ES) September (U) Contract

HOD  ATR Range Projection: 2842.50; LOD ATR Range Projection: 2812.50; Cycle Day 1 Low: 2803.00; 3 Day Central Pivot: 2830.00; 3 Day Cycle Target: 2832.45; 10 Day Average True Range 23.00; VIX: 13.68

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Prior Session was a CD1. Markets decline hard and surpassed their Violation levels only to reverse at their Violation Standard Deviation lows (7321.50). Overnight trading is continuing the cycle rally which targets 7435.25 – 7448.00 zone.

CD2 Range High = 7455.00         CD2 Range Low = 7339.50          CD2 Range Avg = 92.00

Scenario 1: IF price holds bid above 7380, THEN upside targets 7419.25 – 7435.00 zone.

Scenario 2: IF price holds offer below 7380, THEN downside targets 7345 – 7339.50 zone.

Range Projections and Key Levels (NQ) September (U) Contract

HOD  ATR Range Projection: 7448.00; LOD ATR Range Projection: 7346.50; Cycle Day 1 Low: 7316.50; 3 Day Central Pivot: 7419.25; 3 Day Cycle Target: 7435.25; 10 Day Average True Range: 84.75; VIX: 13.68

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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.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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


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