An alarming rise in new COVID-19 cases continues to weigh on market sentiment, with U.S. stock index futures sliding over 1% overnight and crude futures off 4% to under $38/bbl.
8:30 International trade in goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $26B, 2-Year FRN Auction
1:00 PM Results of $55B, 5-Year Note Auction
***New: PTG Trading Room Chat Log’s Link
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication
Tuesday’s Session was Cycle Day 2 (CD2): Price action unfolded normally for CD2, with consolidation and balancing within prior value. Specifically above POC (3385) and below VAH (3405), this acted as support/resistance throughout the session. That was until MOC Sell $1.215B forced price lower, closing on low of day (3368.50). Range was 40.50 handles on 1.535M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price will need to hold above the CD1 Low (3356) during the RTH Session to secure a Positive 3 Day Cycle Statistic. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3368, initially targets 3385 – 3395 zone.
2.) Price sustains an offer below 3368, initially targets 3356 – 3335 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3400 PVA Low Edge = 3386 Prior POC = 3390
Range Projections and Key Levels (ES) December 2020 (Z) Contract
Nasdaq 100 (NQ)
PVA High Edge = 11592 PVA Low Edge = 11533 Prior POC = 11560
Bull Scenario: IF Bulls sustain a bid above 11452, THEN initial upside estimate targets 11465 – 11485 zone.
Bear Scenario: IF Bears sustain an offer below 11452, THEN initial downside estimate targets 11435 – 11415 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
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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