Trade Strategy 10.7.20

Markets

 Futures climbed steadily overnight. S&P futures (SPX)  are up 0.8% and Nasdaq futures (NDX:IND)  are up 0.6%. Major indexes in Europe are little changed, while Asia was mixed.

Source: SeekingAlpha.com

Economic Calendar

10:30 EIA Petroleum Inventories
1:00 PM  Results of $29B,10-Year Note Auction
1:00 PM Fed’s Bostic Speech
1:00 PM Fed’s Kashkari Speech
1:00 PM Fed’s Rosengren Speech
2:00 PM FOMC Minutes
2:00 PM Fed’s Williams Speech
2:15 PM Fed’s Kashkari “Economic Implications of Structural Racism”
3:00 PM Fed’s Williams Speech

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

***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 did reach 3 Day Cycle Target (3415) as bulls had total control until POTUS “tweet-bombed” the party by halting all Stimulus negotiations. Market abruptly relinquished past two session gains in a matter of two-hours. Range was 91.25 handles on 1.671M contracts exchanged.

Transition from Cycle Day 2 to Cycle Day 3

This leads us into Cycle Day 3 (CD3): Price is currently below CD1 Low (3346.50) with good odds of recovering back above at some point in today’s session. Cycle targets have been fulfilled, so price is free to roam the range for balance. As such, there are two scenarios to consider for today’s trading.

1.) Price sustains a bid above 3346, initially targeting 3360 – 3365 zone.

2.) Price sustains an offer below 3346, initially targeting 3330 – 3315 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3417       PVA Low Edge = 3304         Prior POC = 3396

Range Projections and Key Levels (ES) December 2020 (Z) Contract

HOD  ATR Range Projection: 3396; LOD ATR Range Projection: 3315; 3 Day Central Pivot: 3362; 3 Day Cycle Target: 3378; 10 Day Average True Range  63; VIX: 29.50

Nasdaq 100 (NQ)

Today is Cycle Day 3 (CD3)…Price has recovered back above CD1 Low (11267.50) securing a Positive 3 Day Cycle Statistic. As such, there are two scenarios to consider for today’s trading:

PVA High Edge = 11498       PVA Low Edge = 10370      Prior POC = 11445

Bull Scenario: IF Bulls sustain a bid above 11320, THEN initial upside estimate targets 11355 – 11370 zone.

Bear Scenario: IF Bears sustain an offer below 11320, THEN initial downside estimate targets 11290 – 11260 zone.

Range Projections and Key Levels (NQ) December 2020 (Z) Contract

HOD  ATR Range Projection: 11475; LOD ATR Range Projection: 11091; 3 Day Central Pivot: 11404; 3 Day Cycle Target: 11557; 10 Day Average True Range: 266; VIX: 29.50

10:30 EIA Petroleum Inventories

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.

Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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


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