Markets are looking to celebrate a different Christmas Eve than the one last year, which saw the S&P 500 dip into bear market territory after President Trump teased about firing Fed Chair Jerome Powell amid rising interest rates. Easing trade tensions, as well as rate cuts in recent months, saw the S&P 500 hit another record on Monday, up nearly 29% YTD, and Wall Street is looking to build on those gains during today’s holiday-shortened trading session. Futures are slightly in the green to commence the Santa Claus rally, which is the tendency for stocks to rise over the last five trading sessions of December and the first two trading sessions of January.
In Asia, Japan flat. Hong Kong closed. China +0.7%. India -0.4%.
In Europe, at midday, London +0.1%. Paris +0.1%. Frankfurt closed.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +0.1% to $60.60. Gold +0.4% to $1495.20. Bitcoin -1.7% to $7254.
Ten-year Treasury Yield -1 bps to 1.92%
Source: Seeking Alpha https://seekingalpha.com/
8:55 Redbook Chain Store Sales
10:00 Richmond Fed Mfg.
10:00 Results of $41B, 5-Year Note Auction
NYSE closes at 1:00 PM
***New: PTG Trading Room Chat Log’s Link
***Christmas Eve Shortened Trading Session >>> Expectation is for light volumes and price compression. Traders and Money Managers are now on full holiday spirit and as such is not the time to push on the string.
Merry Christmas to All and To All a Good Night!
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 3210. Average Range for CD1 is 30.00 handles. Odds of decline > 10 handles = 73% Odds of decline > 20 = 44%
CD1 Range High = 3250.00 CD1 Range Low = 3207.00 CD1 Range Avg = 30.00
Scenario 1: IF Bulls hold bid above 3228, THEN initial upside targets 3232 – 3234 zone.
Scenario 2: IF Bears hold offer below 3228, THEN initial downside targets 3224 – 3222 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 3242.50; LOD ATR Range Projection: 3215.00; 3 Day Central Pivot: 3218.75; 3 Day Cycle Target: 3255.00; 10 Day Average True Range 16.50; VIX: 12.60
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 8665.00. Average Range for CD1 is 101.00 handles. Odds of decline > 20 handles = 75% Odds of decline > 25 = 67%
CD1 Range High =8778.00 CD1 Range Low = 8677.00 CD1 Range Avg = 101.00
Scenario 1: IF Bulls hold bid above 8728, THEN initial upside targets 8736 – 8743 zone.
Scenario 2: IF Bears hold offer below 8728, THEN initial downside targets 8718 – 8708 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 8775.00; LOD ATR Range Projection: 8677.00; 3 Day Central Pivot: 8695.00; 3 Day Cycle Target: 8790.00; 10 Day Average True Range: 57.00; VIX: 12.60
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!
“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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