Markets
Source: SeekingAlpha.com
Economic Calendar
8:30 Goods and Services Trade
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:40 Powell: “Global Reset? Economics, Business and Policy in the Pandemic”
12:00 PM Fed’s Harker: “Machine Learning”
1:00 PM Results of $52B, 3-Year Note Auction
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1): As with recent CD1 sessions, price declined and established early session low (3291.25) at which time this cycle’s rally began. Price closed mid-range of session. Range was 92.75 handles on 2.105M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Cycle Day 1 Low (3346.50) occurred first, during overnight trade…As such this cycle’s rally began in earnest, pushing past (3379) 3 Day Cycle Objective, extending to upper Penetration Levels. For today’s trading, there are two scenarios to consider.
1.) Price sustains a bid above 3384, initially targeting 3396 – 3400 zone.
2.) Price sustains an offer below 3384, initially targeting 3375 – 3370 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3370 PVA Low Edge = 3337 Prior POC = 3384
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3441; LOD ATR Range Projection: 3339; 3 Day Central Pivot: 3361; 3 Day Cycle Target: 3379; 10 Day Average True Range 60; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Early secure cycle low (11267.50) lead to a TVGR Gap Opening which pushed price past cycle target objectives. Price back-tested P-POC (11408) and found solid buy support. For today’s trading, there are two scenarios to consider.
PVA High Edge = 11498 PVA Low Edge = 10352 Prior POC = 11408
Bull Scenario: IF Bulls sustain a bid above 11408, THEN initial upside estimate targets 11463 – 11488 zone.
Bear Scenario: IF Bears sustain an offer below 11408, THEN initial downside estimate targets 11387 – 11365 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11669; LOD ATR Range Projection: 11225; 3 Day Central Pivot: 10426; 3 Day Cycle Target: 11356; 10 Day Average True Range: 265; 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!
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