Markets
U.S. stock index futures inched down 0.23% overnight after the market’s historic rally extended to December and the S&P 500 hit a fresh record high.
Source: SeekingAlpha.com
Economic Calendar
Auto Sales
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
9:00 Fed’s Quarles: “Financial Regulation”
9:00 Fed’s Williams Speech
10:00 Fed’s Harker: Economic Outlook
10:00 Powell Testifies Before House Financial Services Committee
1:00 PM Fed’s Williams Speech
2:00 PM Fed’s Beige Book
10:30 EIA Petroleum Inventories
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication
Tuesday’s Session was Cycle Day 3 (CD3): Price continued this cycle’s rally, fulfilling CD3 Penetration Level (3673) and notching a new all-time high. Afternoon retest of high failed and price pulled back to close at POC (3660). Range was 51.50 handles on 1.304M 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 3650, with deeper projections targeting 3640 – 3634 3 Day Central Pivot Zone. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3650, initially targets 3665 – 3670 zone.
2.) Price sustains an offer below 3650, initially targets 3640 – 3634 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >> Cycle Day 1 (CD1)
PVA High Edge = 3670 PVA Low Edge = 3658 Prior POC = 3660
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3680; LOD ATR Range Projection: 3628; 3 Day Central Pivot: 3637; 3 Day Cycle Target: 3715; 10 Day Average True Range 38; VIX: 21
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading narrowly within prior value zone during overnight activity. Prior Range was 200.25 handles on 459k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12451 PVA Low Edge = 112351 Prior POC = 12375
Bull Scenario: IF Bulls sustain a bid above 12412, THEN initial upside estimate targets 12450 – 12490 zone.
Bear Scenario: IF Bears sustain an offer below 12412, THEN initial downside estimate targets 12375 – 12350 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12567; LOD ATR Range Projection: 12312; 3 Day Central Pivot: 12305; 3 Day Cycle Target: 12497; 10 Day Average True Range: 162; VIX: 21
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