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.
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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!
“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
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