Trade Strategy 11.6.18

Markets
 
U.S. stock index futures are dipping into negative territory again as Americans cast their vote in a closely-watched midterm election. The results will likely set the tone for the markets, though the question is what kind of tone that will be. Some say a Republican sweep could send Treasury yields higher and weigh on stocks, though others say it could propel equities given Trump’s business-friendly agenda. The same split prediction is being offered if Democrats take control of one of the chambers of Congress.
 
In Asia, Japan +1.1%. Hong Kong +0.7%. China -0.2%. India +0.1%
In Europe, at midday, London -0.6%. Paris -0.2%. Frankfurt -0.2%
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude -0.4% to $62.82. Gold +0.3% to $1236.50. Bitcoin flat at $6422. 
Ten-year Treasury Yield flat at 3.19%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey

PTG Trading Room Chat Log’s Link Click this link to view:

S&P 500

Today is Cycle Day 3 (CD3)…Price has fulfilled 3 Day Cycle objectives and currently trading near 3 Day Central Pivot Zone and Daily Pivot. All this adds up to neutral sentiment as Americans cast their votes in Mid-Term Elections. Expectations will be for relatively quiet trade throughout the RTH with potential for spikes in either direction as news releases of election progress is leaked. Stay flexible and mind your risk parameters.

CD3 Range High = 2766.50          CD3 Range Low = 2709.75          CD3 Range Avg = 36.75 

Scenario 1: IF price holds bid above 2730, THEN upside targets 2740 – 45 zone. Upper STATX Zone measures 2747.75 – 2751.50.

Scenario 2: IF price holds offer below 2730, THEN downside targets 2725 – 2720 zone. Lower STATX Zone measures 2716.25 – 2713.00.

Range Projections and Key Levels (ES) December (Z) Contract

HOD  ATR Range Projection: 2781.75; LOD ATR Range Projection: 2694.50; Cycle Day 1 Low: 2699.50; 3 Day Central Pivot: 2730.00; 3 Day Cycle Target: 2726.00; 10 Day Average True Range 52.00; VIX: 20.27

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Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price has fulfilled 3 Day Cycle objectives and currently trading near Daily Pivot. All this adds up to neutral sentiment as Americans cast their votes in Mid-Term Elections. Expectations will be for relatively quiet trade throughout the RTH with potential for spikes in either direction as news releases of election progress is leaked. Stay flexible and mind your risk parameters.

CD3 Range High = 6960.50         CD3 Range Low = 6915.50          CD3 Range Avg = 141.00

Scenario 1: IF price holds bid above 6940, THEN upside targets 6960 – 6990 zone.

Scenario 2: IF price holds offer below 6940, THEN downside targets 6911.75 (CD1 Low) and IF violated and converted, THEN further downside measures 6890 – 6870 zone.

Range Projections and Key Levels (NQ) December (Z) Contract

HOD  ATR Range Projection: 7100.00; LOD ATR Range Projection: 6776.50; Cycle Day 1 Low: 6911.25; 3 Day Central Pivot: 6987.00; 3 Day Cycle Target: 6975.50; 10 Day Average True Range: 193.00; VIX: 20.27

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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.

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


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