In Europe, at midday, London -0.6%. Paris flat. Frankfurt -0.1%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.2%. Crude +0.4% to $68.78. Gold -0.4% to $1209.50. Bitcoin +0.1% to $7081.
Ten-year Treasury Yield -1 bps to 2.87%
7:00 MBA Mortgage Applications
8:30 GDP Q2
8:30 Corporate profits
10:00 Pending Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:30 Results of $17B, 2-Year FRN Auction
11:30 Results of $31B, 7-Year Note Auction
3:00 PM Farm Prices
S&P 500
Today is Cycle Day 2 (CD2)…Price is currently in “back n fill” consolidation-mode following a strong breakout to fresh all-time highs. Cycle Day 1 (CD1) did produce a shallow decline to 2894.25 which will be used as support marker. Pre-Labor Day Holiday trade has been relatively light with low volatility which favors the bullish bias case.
CD2 Range High = 2922.00 CD2 Range Low = 2882.00 CD2 Range Avg = 23.25
Scenario 1: IF price holds bid above 2898 handle, THEN initial objective is to test 2906 prior high. IF converted, THEN expansion targets 2912 handle.
Scenario 2: IF price holds offer below 2898 handle, THEN initial objective is to test 2894.25 CD1 Low for surety. IF successful, THEN probability favors continued lateral consolidation. Violation and conversion targets 2889.50 – 2887.25 zone.
Range Projections and Key Levels (ES) September (U) Contract
HOD ATR Range Projection: 2916.50; LOD ATR Range Projection: 2887.25; Cycle Day 1 Low: 2894.25; 3 Day Central Pivot: 2887.25; 3 Day Cycle Target: 2924.75; 10 Day Average True Range 17.75; VIX: 12.32
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently in “back n fill” consolidation-mode following a strong breakout to fresh all-time highs. Cycle Day 1 (CD1) did produce a shallow decline to 7564.25 which will be used as support marker. Pre-Labor Day Holiday trade has been relatively light with low volatility which favors the bullish bias case.
CD2 Range High = 7632.75 CD2 Range Low = 7548.25 CD2 Range Avg = 87.00
Scenario 1: IF price holds bid above 7581 handle, THEN initial objective is to test 7597.25 prior high. IF converted, THEN expansion targets 7617.25 – 7627.50 zone.
Scenario 2: IF price holds offer below 7581 handle, THEN initial objective is to test 7564.25 CD1 Low for surety. IF successful, THEN probability favors continued lateral consolidation. Violation and conversion targets 7548.25 – 7533.50 zone.
Range Projections and Key Levels (NQ) September (U) Contract
HOD ATR Range Projection: 7647.25; LOD ATR Range Projection: 7533.50; Cycle Day 1 Low: 7564.25; 3 Day Central Pivot: 7533.00; 3 Day Cycle Target: 7627.50; 10 Day Average True Range: 66.25; VIX: 12.32
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