Trade Strategy 12.26.18

Posted on by December 27, 2018
Markets
 
Traders returning from the holiday are sending U.S. futures higher following the Grinch’s appearance on Christmas Eve that continued the market meltdown. President Trump has since praised U.S. companies, saying, “they have record kinds of numbers. So I think it’s a tremendous opportunity to buy,” and expressed confidence in Treasury Secretary Steven Mnuchin, who convened the “Plunge Protection Team” on Monday after speaking with executives from six major banks.
 
Gold climbed to a six-month high of 1,277 per ounce overnight as bear fears prompted investors to seek refuge in the metal. 
 
Following yesterday’s 5% plunge, Japan’s Nikkei closed about 1% higher overnight as Prime Minister Shinzo Abe reassured investors that fundamentals remain strong and pledged to strengthen the economy through steps to boost productivity.
 
In Asia, Japan +0.9%. Hong Kong closed. China -0.3%. India +0.5%. 
In Europe, at midday, London closed. Paris closed. Frankfurt closed. 
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.5%. Crude +1.7% to $43.23. Gold +0.4%to $1277.10. Bitcoin -0.2% to $3742. 
Ten-year Treasury Yield -2 bps to 2.73%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

7:00 MBA Mortgage Applications
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
10:00 Richmond Fed Mfg.
10:00 State Street Investor Confidence Index
11:30 Results of $18B, 2-Year FRN Auction
1:00 PM Results of $41B, 5-Year Note Auction

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

S&P 500

Today is Cycle Day 2 (CD2)…Price has bounced “somewhat” off deep statistical lows in a effort to stabilize resent selling. Key Daily Pivot (2773.00) will be the bogey or “bogeyman” for bulls to overcome and convert. IF successful, THEN plenty of room to recover price higher, with initial range targets measuring 2388 – 2408 zone.

CD2 Range High = 2372.00          CD2 Range Low = 2314.00         CD2 Range Avg = 55.00

Scenario 1: IF price holds bid above 2373, THEN upside targets 2388 – 2408 zone.

Scenario 2: IF price holds offer below 2373, THEN downside targets 2340.50 – 2328.00 zone.

Range Projections and Key Levels (ES) March 19 (H) Contract

HOD  ATR Range Projection: 2388.00; LOD ATR Range Projection: 2297.00; Cycle Day 1 Low: 2340.50; 3 Day Central Pivot: 2434.00; 3 Day Cycle Target: 2387.00; 10 Day Average True Range 72.00; VIX: 35.00

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Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price has bounced “somewhat” off deep statistical lows in a effort to stabilize resent selling. Key Daily Pivot (5968.00) will be the bogey or “bogeyman” for bulls to overcome and convert. IF successful, THEN plenty of room to recover price higher, with initial range targets measuring 6006 – 6036 zone.

CD2 Range High = 6002.00         CD2 Range Low = 5782.00          CD2 Range Avg = 181..00

Scenario 1: IF price holds bid above 5968, THEN upside targets 6006 – 6036 zone.

Scenario 2: IF price holds offer below 5968, THEN downside targets 5910 – 5860 zone.

Range Projections and Key Levels (NQ) March 19 (H) Contract

HOD  ATR Range Projection: 6036.00; LOD ATR Range Projection: 5748.00; Cycle Day 1 Low: 5888.75; 3 Day Central Pivot: 6140.00; 3 Day Cycle Target: 6054.00; 10 Day Average True Range: 216.00; VIX: 35.00

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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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