Trade Strategy 12.18.18

Posted on by December 19, 2018
Markets
 
U.S. futures are pointing to a slight recovery for Wall Street with the stock market on pace for its worst December since the Great Depression. Aside from signs of slowing growth around the world, drama is setting in as the FOMC begins its two-day meeting on interest rate policy. President Trump took aim again yesterday, stating it was “incredible that with a very strong dollar, virtually no inflation and the outside world blowing up around us… the Fed is even considering yet another rate hike.”
 
Oil tumbled another 4% overnight, dropping for a third consecutive session, as reports of swelling inventories and forecasts of record U.S. and Russian output combined with a sharp selloff in equity markets. OPEC and other oil producers agreed this month to curb production by 1.2M barrels per day, but those cuts won’t happen until next month and the amount only represents about 1% of global demand.
 
In Asia, Japan -1.8%. Hong Kong -1.1%. China -0.8%. India +0.2%. 
In Europe, at midday, London -0.4%. Paris -0.2%. Frankfurt +0.2%. 
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude -4.1% to $47.84. Gold +0.1% to $1253.20. Bitcoin +7.1% to $3461. 
Ten-year Treasury Yield -3 bps to 2.82%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

FOMC meeting begins
8:30 Housing Starts
8:55 Redbook Chain Store Sales

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

S&P 500

Today is Cycle Day 3 (CD3)…Price has rallied off the deep extremes in prior session and holding bid within Daily Pivot Zone (2552.75 – 2575.25). Expectation for today will be for back n fill consolidation to stabilize and absorb any additional reappearance of sellers. Marking 2550 – 2575 as initial price edges.

CD3 Range High = 2575.00          CD3 Range Low = 2545.50          CD3 Range Avg = 47.00 

Scenario 1: IF price holds bid above 2569, THEN upside targets 2575.25, followed by 2585 – 2590 zone.

Scenario 2: IF price holds offer below 2569, THEN downside targets 2545, followed by 2535 – 2530 zone.

Range Projections and Key Levels (ES) March (H) Contract

HOD  ATR Range Projection: 2609.00; LOD ATR Range Projection: 2512.00; Cycle Day 1 Low: 2597.25; 3 Day Central Pivot: 2513.50; 3 Day Cycle Target: 2641.00; 10 Day Average True Range 58.00; VIX: 24.00

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Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price has rallied off the deep extremes in prior session and holding bid within Daily Pivot Zone (6508.75 – 6539.75). Expectation for today will be for back n fill consolidation to stabilize and absorb any additional reappearance of sellers. Marking 6470 – 6550 as initial price edges.

CD3 Range High = 6540.50         CD3 Range Low = 6474.00          CD3 Range Avg = 165.00

Scenario 1: IF price holds bid above 6525, THEN upside targets 6540.50, followed by 6560 – 6570 zone.

Scenario 2: IF price holds offer below 6525, THEN downside targets 6485 – 6475 zone

Range Projections and Key Levels (NQ) March (H) Contract

HOD  ATR Range Projection: 6664.00; LOD ATR Range Projection: 6350.50; Cycle Day 1 Low: 6607.25; 3 Day Central Pivot: 6662.00; 3 Day Cycle Target: 6672.00; 10 Day Average True Range: 177.00; VIX: 24.00

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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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