Markets
The “too early to call” Election Night does not seem to be giving tech traders anxiety as Nasdaq 100 (NASDAQ:QQQ) futures climbed fast enough to trigger an exchange volatility halt that pauses rapid swings at 3.5%. Contracts linked to the index have have since pared some gains to trade 2.3% higher, while the Dow (NYSEARCA:DIA) flatlined and S&P 500 (NYSEARCA:SPY) futures rose by 0.6%.
Source: SeekingAlpha.com
Economic Calendar
FOMC meeting begins
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Goods and Services Trade
9:45 PMI Composite Final
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
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 1 (CD1): Trade action was bullish with all Major Indexes scoring solid gains in somewhat subdued trade, as Americans cast their Presidential Vote. Range was 81.50 handles on 1.637M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Clearly this Presidential Election is a historic event, as Americans voting today is at unprecedented levels never seen before. How this will all play out in the markets is anyone’s guess. In that spirit, we will offer the Taylor 3 Day Cycle’s projections as a method which has guided PTG’s trading for over a decade. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3360, initially targets 3415 – 3430 zone.
2.) Price sustains an offer below 3360, initially targets 3340 – 3330 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3378 PVA Low Edge = 3352 Prior POC = 3363
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3384; LOD ATR Range Projection: 3367; 3 Day Central Pivot: 3300; 3 Day Cycle Target: 3367; 10 Day Average True Range 65; VIX: 31
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price vaulted 3.5% during overnight trade triggering volatility trading halt. Currently price is holding gains, having fulfilled upside cycle objectives. For today’s trading, there are two scenarios to consider.
PVA High Edge = 11328 PVA Low Edge = 11226 Prior POC = 11305
Bull Scenario: IF Bulls sustain a bid above 11520, THEN initial upside estimate targets 11635 – 11695 zone.
Bear Scenario: IF Bears sustain an offer below 11520, THEN initial downside estimate targets 11460 – 11420 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11500; LOD ATR Range Projection: 11500; 3 Day Central Pivot: 11130; 3 Day Cycle Target: 11360; 10 Day Average True Range: 269; VIX: 31
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