U.S. stock futures are setting up for a positive open, with S&P 500 futures up 0.4% and Dow Jones futures 0.3% higher.
10:00 Wholesale Inventories (Preliminary)
1:00 PM Baker-Hughes Rig Count
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Prior Session was Cycle Day 1 (CD1): Shallow decline which held prior range high lead to a “balanced” bullish grind higher, closing near high of session. This type price action (shallow decline) on CD1 is considered very bullish. Range was 41.75 handles on 1.070M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading higher above prior range, extending bullish price action and achieving 3 Day Cycle target objectives. Normal for CD2 would be for some ‘back n fill’ to absorb recent activity with a bullish lean. Key support is CD1 Low (3405.50). For today’s trading, there are two scenarios to consider.
1.) Price sustains a bid above 3445, initially targeting 3460 – 3465 zone.
2.) Price sustains an offer below 3445, initially targeting 3435 – 3430 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3436 PVA Low Edge = 3425 Prior POC = 3428
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3502; LOD ATR Range Projection: 3403; 3 Day Central Pivot: 3394; 3 Day Cycle Target: 3438; 10 Day Average True Range 57; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Bullish CD1 price action in prior session lead to extended move above prior range during overnight trade. For today’s trading, there are two scenarios to consider.
PVA High Edge = 11555 PVA Low Edge = 11517 Prior POC = 11533
Bull Scenario: IF Bulls sustain a bid above 11555, THEN initial upside estimate targets 11600 – 11626 zone.
Bear Scenario: IF Bears sustain an offer below 11555, THEN initial downside estimate targets 11530 – 11500 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11783; LOD ATR Range Projection: 11372; 3 Day Central Pivot: 11414; 3 Day Cycle Target: 11558; 10 Day Average True Range: 230; VIX: 26
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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