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%.
***New: PTG Trading Room Chat Log’s Link
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
Nasdaq 100 (NQ)
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
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.
Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.
This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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