Markets
Solid earnings from America’s largest tech firms weren’t enough to keep investors from selling late Thursday, with U.S. stock index futures reflecting the sentiment overnight: Dow -1.5%; S&P 500 -1.5%; Nasdaq -2%.
Alphabet (GOOG, GOOGL) took the spotlight of yesterday’s Big Tech earnings show, rallying as much as 8% AH as ad sales bounced back sharply from a pandemic slump (YouTube pulled in more than $5B alone). While other peers did quite well, the quarterly reports led traders to pull out of the sector. Facebook (NASDAQ:FB) slipped nearly 3% amid a user decline and “a significant amount of COVID-related uncertainty,” though revenues were up more than 20% despite ad boycotts. Amazon (NASDAQ:AMZN) also fell 1.5% after predicting $4B in pandemic costs next quarter, while Apple (NASDAQ:AAPL) declined 4% as iPhone sales missed estimates due to customers holding off on purchases before the release of the iPhone 12.
Source: SeekingAlpha.com
Economic Calendar
U.S. GDP came roaring back in Q3 at an annualized rate of 33.1% (vs. +30.9% consensus estimate and -31.4% prior). The number of U.S. workers filing initial claims for unemployment insurance also fell by 40,000 to 751,000 last week to the lowest level since the pandemic began
8:30 Personal Income and Outlays
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): Price declined as expected for CD1, securing an early low at 3250.25, at which time this cycle’s rally began achieving 3315 upside objective. Range was 83.50 handles on 1.925M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price pushed below prior low to CD2 Violation Level (3223) during overnight trade but has since recovered back above CD1 Low (3250.50) fulfilling 3283 3 Day Cycle Target Objective. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3270, initially targets 3290 – 3300 zone.
2.) Price sustains an offer below 3270, initially targets 3260 – 3250 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3308 PVA Low Edge = 3266 Prior POC = 3295
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3286; LOD ATR Range Projection: 3230; 3 Day Central Pivot: 3324; 3 Day Cycle Target: 3283; 10 Day Average True Range 60; VIX: 37
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price pushed lower during overnight trade reversing at 11040 CD2 Violation Level and has since recovered back above 11145 CD1 Low, fulfilling 11234 3 Day Cycle Target Objective. For today’s trading, there are two scenarios to consider.
PVA High Edge = 11334 PVA Low Edge = 11177 Prior POC = 11283
Bull Scenario: IF Bulls sustain a bid above 11200, THEN initial upside estimate targets 11245 – 11285 zone.
Bear Scenario: IF Bears sustain an offer below 11200, THEN initial downside estimate targets 11175 – 11145 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11292; LOD ATR Range Projection: 10994; 3 Day Central Pivot: 11375; 3 Day Cycle Target: 11235; 10 Day Average True Range: 253; VIX: 37
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