Markets
Dow futures are ahead by 1%, while contracts tied to the S&P 500 and Nasdaq are up 0.9% and 0.6%, respectively, building on a recent rotation into value stocks. Expectations are high that Moderna (NASDAQ:MRNA) will report a similar performance for its coronavirus vaccine, which also uses mRNA technology, perhaps as early as today.
Source: SeekingAlpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Strong end to the week as price held firm bid throughout the session, closing near highs of day. Range was 72 handles on 1.230M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is a decline with the average measuring 3524.50. OK…that’s the normal, but overnight and pre-RTH trade has price vaulting higher, already fulfilling 3619 cycle objectives. Question now becomes; Can bulls hold onto gains or will they relinquish them during RTH? As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3610, initially targets 3620 – 3630 zone.
2.) Price sustains an offer below 3610, initially targets 3600 – 3590 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3575 PVA Low Edge = 3550 Prior POC = 3558
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3658; LOD ATR Range Projection: 3564; 3 Day Central Pivot: 3555; 3 Day Cycle Target: 3619; 10 Day Average True Range 72; VIX: 23.50
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price gap higher on Globex open to fulfill 12037 CD1 Penetration Level, but has relinquished those gains pre-RTH as price is currently trading back within prior session value zone. As such, there are two estimated scenarios to consider.
PVA High Edge = 11913 PVA Low Edge = 11852 Prior POC = 11898
Bull Scenario: IF Bulls sustain a bid above 11877, THEN initial upside estimate targets 11943 – 11953 zone.
Bear Scenario: IF Bears sustain an offer below 11877, THEN initial downside estimate targets 11854 – 11833 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12184; LOD ATR Range Projection: 11754; 3 Day Central Pivot: 11854; 3 Day Cycle Target: 11943; 10 Day Average True Range: 311; VIX: 23.50
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