Trade Strategy 12.27.18

Markets
 
Wednesday marked the biggest post-Christmas rally for U.S. stocks ever amid strong retail sales indications, surging oil prices and positive headlines from the White House. The DJIA jumped 1,086.25 points, or 4.98%, posting its largest single-day point gain in its history, while the S&P 500 and Nasdaq recorded their best days since March 2009. Santa’s trip to Wall Street is not coming easy, however, with futures pointing to a significant decline for the three major U.S. stock indexes ahead of the open.
 
In Asia, Japan +3.9%. Hong Kong -0.7%. China -0.6%. India +0.4%
In Europe, at midday, London -0.9%. Paris -0.1%. Frankfurt -1.7%
Futures at 6:20, Dow -1.5%. S&P -1.5%. Nasdaq -1.7%. Crude -1.2% to $45.67. Gold +0.1% to $1274.70. Bitcoin -0.1% to $3735. 
Ten-year Treasury Yield -2 bps to 2.77%
 
(Source: Seeking Alpha)
 
Economic Calendar

http://mam.econoday.com/

8:30 Initial Jobless Claims
9:00 FHFA House Price Index
10:00 New Home Sales
10:00 Consumer Confidence
1:00 PM Results of $32B, 7-Year Note Auction
3:00 PM Farm Prices
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

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

S&P 500

Today is Cycle Day 3 (CD3)…Prices is retreating during overnight trade from it’s historically explosive upside rally in prior session. Key Pivot Zone is marked between 2420 – 2412. Whether this was a one-time rally that fizzles is still an open verdict. Bulls will need to continue to absorb any residual selling that develops for the Santa Rally to play out normally.

CD3 Range High = 2475.50          CD3 Range Low = 2428.50          CD3 Range Avg = 53.00 

Scenario 1: IF price holds bid above 2420, THEN upside targets retest of 2465 – 2475 zone.

Scenario 2: IF price holds offer below 2420, THEN downside targets 2412 – 2397 zone.

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

HOD  ATR Range Projection: 2504.00; LOD ATR Range Projection: 2400.00; Cycle Day 1 Low: 2340.50; 3 Day Central Pivot: 2413.00; 3 Day Cycle Target: 2388.00; 10 Day Average True Range 82.00; VIX: 32.00

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Nasdaq 100 (NQ)

Today is Cycle Day 3 …Prices is retreating during overnight trade from it’s historical explosive upside rally in prior session. Key Pivot Zone is marked between 6136 – 6085. Whether this was a one-time rally that fizzles is still an open verdict. Bulls will need to continue to absorb any residual selling that develops for the Santa Rally to play out normally.

CD3 Range High = 6325.00         CD3 Range Low = 6124.00          CD3 Range Avg = 181.00

Scenario 1: IF price holds bid above 6136, THEN upside targets retest of 6250 – 6280 zone.

Scenario 2: IF price holds offer below 6136, THEN downside targets 6085 – 6058 zone.

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

HOD  ATR Range Projection: 6390.50; LOD ATR Range Projection: 6058.00; Cycle Day 1 Low: 5888.75; 3 Day Central Pivot: 6085.00; 3 Day Cycle Target: 6054.00; 10 Day Average True Range: 247.00; VIX: 32.00

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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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