Markets
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Consumer Price Index
8:55 Redbook Chain Store Sales
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Positive Cycle Statistic had been fulfilled early in this cycle with the rally reaching and surpassing price objectives. Range was was 76.75 on 1.351M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline, with average measuring 3495. Average CD1 Range is 59 handles. Price is holding firm bid during overnight trading within prior value zone. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3520, initially targeting 3540 – 3550 zone.
2.) Price sustains an offer below 3520, initially targeting 3510 – 3500 zone.
P -VA High = 3541 P – VA Low = 3501 P – POC = 3527
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3563; LOD ATR Range Projection: 3482; 3 Day Central Pivot: 3469; 3 Day Cycle Target: 3542; 10 Day Average True Range 54; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price has firm bid trading within prior session’s range. As such, there are two scenarios to consider for today’s trading.
P – VA High = 12197 P – VA Low = 11925 P – POC = 12085
Bull Scenario: IF Bulls hold bid above 12085, THEN initial upside estimate targets 12197 – 12291 zone.
Bear Scenario: IF Bears hold offer below 12085, THEN initial downside estimate targets 12023 – 11925 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12263; LOD ATR Range Projection: 12008; 3 Day Central Pivot: 11729; 3 Day Cycle Target: 12112; 10 Day Average True Range: 240; VIX: 25
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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