Markets
Pulling back from record highs
There’s not much movement from U.S. stock index futures after the Nasdaq snapped a four-day win streak with its biggest drop since October.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Consumer Price Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM Results of $24B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Trade action played like a “well-tuned fiddle” as decline occurred as outlined in prior DTS 12/9/20. “Core cycle objectives have been fulfilled. As such, with price being at all-time highs, there is increased potential for a pullback/decline developing. We’ll mark today’s CD3 as a “wild-card”, as there is plenty of room for down side should profit-taking unfold.” Range was 55.25 handles on 1.677M 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 3664 which was fulfilled during prior session’s sell-off. Overnight bounce attempt has failed with price currently trading near lows. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3664, initially targets 3675 – 3680 zone.
2.) Price sustains an offer below 3664, initially targets 3650 – 3645 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3696 PVA Low Edge = 3660 Prior POC = 3668
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3706; LOD ATR Range Projection: 3620; 3 Day Central Pivot: 3686; 3 Day Cycle Target: 3730; 10 Day Average True Range 53; VIX: 22
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading below prior session’s low (12306.75). Prior Range was 368.25 handles on 3616k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12590 PVA Low Edge = 12306 Prior POC = 12366
Bull Scenario: IF Bulls sustain a bid above 12306, THEN initial upside estimate targets 12375 – 12400 zone.
Bear Scenario: IF Bears sustain an offer below 12306, THEN initial downside estimate targets 12270 – 12257 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12494; LOD ATR Range Projection: 12162; 3 Day Central Pivot: 12532; 3 Day Cycle Target: 12595; 10 Day Average True Range: 211; VIX: 22
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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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