In Europe, at midday, London -0.5%. Paris -1%. Frankfurt -0.8%.
Futures at 6:20, Dow -0.4%. S&P -0.3%. Nasdaq -0.5%. Crude +0.5% to $75.68. Gold +0.2% to $1194.30. Bitcoin -0.3% to $6557.
Ten-year Treasury Yield -2 bps to 3.06%
8:55 Redbook Chain Store Sales
10:00 Randal Quarles: “Testimony on Implementation of the Economic Growth Regulatory Relief and Consumer Protection Act”
12:00 PM Jerome Powell Speech
S&P 500
Today is Cycle Day 2 (CD2)…Prior session’s Line-In-Sand (LIS) was 2919 3D Central Pivot. This level will remain as today’s LIS as well. Violation and conversion of this level to lower resistance targets 2905 handle and calls for a reassessment of short-term bullish conditions.
CD2 Range High = 2939.00 CD2 Range Low = 2907.00 CD2 Range Avg = 18.75
Scenario 1: IF price holds bid above 2919, THEN upside targets 2926, followed by 2930.25 – 2932.25. ATR Range Targets 2936.50.
Scenario 2: IF price holds offer below 2919, THEN downside targets 2912 -2907 CD2 Range Zone.
Range Projections and Key Levels (ES) December (Z) Contract
HOD ATR Range Projection: 2936.50; LOD ATR Range Projection: 2911.00; Cycle Day 1 Low: 2922.50; 3 Day Central Pivot: 2923.50; 3 Day Cycle Target: 2951.00; 10 Day Average True Range 18.75; VIX: 12.34
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Prior session’s lower target zone as outlined in prior DTS Briefing 10.1.18...”Scenario 2: IF price violates and converts 7654.00 Central Pivot, THEN downside targets 7630.25 – 7635.25 3D Central Pivot Zone.“
Currently price is trading exactly within this zone which will be marked as “key support”. Violation and conversion of this zone opens door to deeper corrective trade targeting 7598 – 7588 zone. Bulls will need to recover above 7662 handle to squelch the sellers.
CD2 Range High = 7682.50 CD2 Range Low = 7595.00 CD2 Range Avg = 83.00
Scenario 1: IF price holds bid above 7662, THEN upside targets 7679.50 – 7690.50 Central Pivot Zone.
Scenario 2: IF price holds offer below 7662, THEN downside targets 7612 – 7598 CD2 range zone.
Range Projections and Key Levels (NQ) December (Z) Contract
HOD ATR Range Projection: 7710.00; LOD ATR Range Projection: 7598.00; Cycle Day 1 Low: 7352.00; 3 Day Central Pivot: 7662.00; 3 Day Cycle Target: 7762.00; 10 Day Average True Range: 79.50; VIX: 12.34
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