Markets
Campaign trail ends with market rally
Tech mega-caps continue to be the big gainers across the board following a razor-thin election and outstanding political uncertainty (didn’t the sell-side say a lack of immediate results would be negative for the market?) Anyways, many voices are chiming in on the catalysts for the move higher after additional outsized gains were seen from stock index futures overnight: Dow +1.4%; S&P 500 +2%; Nasdaq +3%.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Productivity and Costs
10:30 EIA Natural Gas Inventory
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 2 (CD2): Price oscillation during Globex Session lead to continuation rally during RTH Session. Range expansion was 161 handles on an increased 2.748M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently trading above prior Value Zone fulfilling 3500 CD3 Penetration Level. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3500, initially targets 3510 – 3515 zone with extension target measuring 3524 handle.
2.) Price sustains an offer below 3500, initially targets 3490 – 3480 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3480 PVA Low Edge = 3405 Prior POC = 3460
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3502; LOD ATR Range Projection: 3434; 3 Day Central Pivot: 3350; 3 Day Cycle Target: 3338; 10 Day Average True Range 74; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has continued its strong rally shifting overnight Value Zone well above prior Value. As such, there are two scenarios to consider for today’s trading.
PVA High Edge = 11835 PVA Low Edge = 11592 Prior POC = 11776
Bull Scenario: IF Bulls sustain a bid above 12040, THEN initial upside estimate targets 12095 – 12120 zone.
Bear Scenario: IF Bears sustain an offer below 12040, THEN initial downside estimate targets 12000 – 11950 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12083; LOD ATR Range Projection: 11807; 3 Day Central Pivot: 11308; 3 Day Cycle Target: 11405; 10 Day Average True Range: 313; 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!
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.”
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