Markets
Stock futures are trimming their best weekly advance since April following a four-day rally that saw the S&P score daily gains in excess of 1% and a whole lot more for Big Tech. At the time of writing: Dow -0.5%; S&P 500 -0.7%; Nasdaq -1%.
Source: SeekingAlpha.com
Economic Calendar
As coronavirus infections surge across the nation the latest nonfarm payrolls report will be released at 8:30 a.m. ET, and is expected to show an increase of 600K jobs in October. Anything less than September’s 661K could confirm a continuing slowdown in growth, with the pace decelerating every month since June, when the economy added 4.8M jobs. The unemployment rate is expected to fall to 7.7% in October from 7.9% in September, while average hourly earnings are forecast rising 0.2% after gaining 0.1% last month.
8:30 Non-farm payrolls
8:30 Wholesale Inventories (Preliminary)
1:00 PM Baker-Hughes Rig Count
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Price continued cycle rally fulfilling upside target objectives. Range was 94.25 handles on 1.635M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline with average measuring 3458, which has already been fulfilled during Globex Session. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3475, initially targets 3490 – 3498 zone.
2.) Price sustains an offer below 3475, initially targets 3465 – 3460 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3517 PVA Low Edge = 3498 Prior POC = 3511
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3435; LOD ATR Range Projection: 3431; 3 Day Central Pivot: 3416; 3 Day Cycle Target: 3490; 10 Day Average True Range 78; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal for CD1 is decline with average measuring 11825 handle. For today’s trading, there are two scenarios to consider.
PVA High Edge = 12087 PVA Low Edge = 12032 Prior POC = 12022
Bull Scenario: IF Bulls sustain a bid above 11950, THEN initial upside estimate targets 11995 – 12010 zone.
Bear Scenario: IF Bears sustain an offer below 11950, THEN initial downside estimate targets 11920 – 11905 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12195; LOD ATR Range Projection: 11762; 3 Day Central Pivot: 11614; 3 Day Cycle Target: 11959; 10 Day Average True Range: 327; VIX: 28
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