U.S. stock index futures climbed around 0.8% overnight
8:30 Housing Starts and Permits
8:55 Redbook Chain Store Sales
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Prior Session was Cycle Day 2 (CD2): Failed rally attempt resulted in aggressive selling, driving price past CD1 Low (3461.25) down to cycle violation levels. Range was 85.75 handles on 1.612M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price has recovered approximately one-half of prior decline, but still below CD1 Low (3461.25). Odds (91%) typically favor recovering CD1 Low (3461.25). As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3445, initially targeting 3460 – 3465 zone.
2.) Price sustains an offer below 3445, initially targeting 3425 – 3420 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3471 PVA Low Edge = 3410 Prior POC = 3422
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3482; LOD ATR Range Projection: 3398; 3 Day Central Pivot: 3465; 3 Day Cycle Target: 3493; 10 Day Average True Range 53; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has recovered approximately one-third of prior session’s decline and still below CD1 Low (11792). Price will need to reclaim this level, otherwise risk a failed cycle. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11940 PVA Low Edge = 11743 Prior POC = 11784
Bull Scenario: IF Bulls sustain a bid above 11743, THEN initial upside estimate targets 11792 – 11834 zone.
Bear Scenario: IF Bears sustain an offer below 11743, THEN initial downside estimate targets 11700 – 11680 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11916; LOD ATR Range Projection: 11504; 3 Day Central Pivot: 11834; 3 Day Cycle Target: 11882; 10 Day Average True Range: 250; VIX: 28
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!
“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