In Europe, at midday, London -0.6%. Paris -1.1%. Frankfurt -1.6%.
Futures at 6:20, Dow -1.1%. S&P -1.2%. Nasdaq -1.6%. Crude -1.5% to $68.34. Gold +1% to $1237. Bitcoin -0.7% to $6403.
Ten-year Treasury Yield -4 bps to 3.15%
8:55 Redbook Chain Store Sales
9:30 Fed’s Kashkari Speech
10:00 Richmond Fed Mfg.
1:00 PM Results of $38B, 2-Year Note Auction
1:30 PM Fed’s Bostic: Economic Outlook and Monetary Policy
2:15 PM Fed’s Kaplan Speech
6:15 PM Fed’s Evans Speech
8:00 PM Fed’s George “Disruption in the Payments Landscape”
Trading Room Postings from Nikkei & Shanghai Sessions:
S&P 500
Today is Cycle Day 2 (CD2)…As noted in last night’s posting…Bulls are having a tough time gaining traction as sellers continue to pile-in on any uptick. Price has pushed below CD2 Violation Levels (2726.25) and testing lower edge (2717.50) of STATX Zone.
CD2 Range High = 2738.00 CD2 Range Low = 2728.00 CD2 Range Avg = 28.50
Scenario 1: Price will need to recover above 2730…IF successful, THEN upsdie targets 2735 – 2740 zone.
Scenario 2: IF price fails to recover 2730, THEN downside targets 2715 – 2710 STATX Zone.
Range Projections and Key Levels (ES) December (Z) Contract
HOD ATR Range Projection: 2752.50; LOD ATR Range Projection: 2715.00; Cycle Day 1 Low: 2749.75; 3 Day Central Pivot: 2774.00; 3 Day Cycle Target: 2778.50; 10 Day Average True Range 42.50; VIX: 24.00
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…NAZ has held up relatively better than ES, but continues to struggle gaining solid traction. Price is currently trading pre-RTH below CD1 Low (7057) and fulfilled initial Violation Target of 7029.75. Bulls need to recover 7057 to stem further losses.
CD2 Range High = 7130.00 CD2 Range Low = 7045.00 CD2 Range Avg = 114.50
Scenario 1: Bulls need to recover back above 7057 and IF successful, THEN upside targets 7085 – 7100 zone.
Scenario 2: IF price holds offer below 7057, THEN initial downside targets 7029.75, followed by 7015 – 7002 range low.
Range Projections and Key Levels (NQ) December (Z) Contract
HOD ATR Range Projection: 7172.75; LOD ATR Range Projection: 7002.25; Cycle Day 1 Low: 7057.00; 3 Day Central Pivot: 7158.75; 3 Day Cycle Target: 7172.50; 10 Day Average True Range: 158.00; VIX: 24.00
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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