Trade Strategy 1.10.19

Markets
 
U.S. stock index futures are pointing to the first loss in five sessions for Wall Street amid further concerns of a slowdown in the world’s second largest economy. China’s consumer price index dropped to 1.9%, well below the 3% upper limit set by the PBOC, and producer prices grew at the slowest pace in two years. 
 
Investors today will be looking for new clues on interest rate policy after yesterday’s minutes from the FOMC’s December meeting indicated patience for upcoming rate hikes and possible changes to the central bank’s balance sheet plan.
 
In Asia, Japan -1.3%. Hong Kong +0.2%. China -0.4%. India -0.3%
In Europe, at midday, London -0.2%. Paris -0.8%. Frankfurt -0.4%
Futures at 6:20, Dow -0.4%. S&P -0.6%. Nasdaq -0.6%. Crude -0.8% to $51.96. Gold +0.2% to $1294.20. Bitcoin -6.2% to $3769. 
Ten-year Treasury Yield -3 bps to 2.7%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Initial Jobless Claims
8:35 Fed’s Barkin Speech
10:00 Wholesale Trade
10:30 EIA Natural Gas Inventory
12:40 PM Fed’s Bullard: U.S. Monetary and Economic Policy
12:45 PM Jerome Powell Speech
1:00 PM Fed’s Evans Speech
1:00 PM Results of $16B, 30-Year Note Auction
1:20 PM Fed’s Kashkari Speech
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

*****New PTG Trading Room Chat Log’s Link Click this link to view:

S&P 500

Today is Cycle Day 3 (CD3)…Having fulfilled upside objectives outlined in prior DTS Briefing 1.9.19, Scenario 1: IF price clears and converts 2581.25, THEN initial upside potential targets 2590 – 2593 CD2 Penetration Range Zone.”…Price has pulled back during overnight trade into 3 Day Central Pivot Zone (2566.75 – 2564.25) where action has stabilized.

CD3 Range High = 2584.00          CD3 Range Low = 2558.50          CD3 Range Avg = 57.00 

Scenario 1: IF price holds bid above 2565, THEN initial upside potential targets 2575 – 2580 zone. Further conversion of this zone to upper support expands objective to retest 2596.75 prior high.

Scenario 2: IF price holds offer below 2565, THEN initial downside potential targets 2556, followed by possible retest of 2547.50 CD1 Low.

Range Projections and Key Levels (ES) March (H) Contract

HOD  ATR Range Projection: 2614.50; LOD ATR Range Projection: 2527.50; Cycle Day 1 Low: 2547.50; 3 Day Central Pivot: 2565.00; 3 Day Cycle Target: 2608.00; 10 Day Average True Range 54.00; VIX: 21.00

Click Here

Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price has pulled back during overnight trade into 3 Day Central Pivot Zone (6545.75 – 6530.75) where action has stabilized.

CD3 Range High = 6596.00         CD3 Range Low = 6548.00          CD3 Range Avg = 192.00

Scenario 1: IF price holds bid above 6540, THEN initial upside potential targets 6590 – 6610 zone. Further conversion of this zone to upper support expands objective to retest 6645.00 prior high.

Scenario 2: IF price holds offer below 6540, THEN initial downside potential target 6515, followed by possible retest of 6467.25 CD1 Low.

Range Projections and Key Levels (NQ) March (H) Contract

HOD  ATR Range Projection: 6710.50; LOD ATR Range Projection: 6434.00; Cycle Day 1 Low: 6467.25; 3 Day Central Pivot: 6540.00; 3 Day Cycle Target: 6667.00; 10 Day Average True Range: 170.00; VIX: 21.00

Click Here

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


Leave a Reply