Trade Strategy 12.8.20

Markets

Source: SeekingAlpha.com

Economic Calendar

8:30 Productivity and Costs
8:55 Redbook Chain Store Sales
1:00 PM Results of $56B, 3-Year Note Auction

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

Prior Session was Cycle Day 1 (CD1): Normal for a CD1 is for a decline, which did happen this cycle, placing CD1 Low at 3672.25. Range was 32.75 handles on 1010M contracts exchanged.

 …Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price is currently trading within 3-day value zone, and near CD1 Low. Normal for a CD2 is for some ‘back n fill’ consolidation type trade. As such, there are two estimated scenarios to consider for today’s trading.

1.) Price sustains a bid above 3672, initially targets 3680 – 3690 zone.

2.) Price sustains an offer below 3672, initially targets 3665 – 3660 zone.

*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.

PVA High Edge = 3696       PVA Low Edge = 3686         Prior POC = 3694

Range Projections and Key Levels (ES) December 2020 (Z) Contract

HOD  ATR Range Projection: 3698; LOD ATR Range Projection: 3655; 3 Day Central Pivot: 3681; 3 Day Cycle Target: 3743; 10 Day Average True Range  33; VIX: 22

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is currently trading below prior value zone. As such, there are two estimated scenarios to consider for today’s trading.

PVA High Edge = 12600       PVA Low Edge = 12558      Prior POC = 12577

Bull Scenario: IF Bulls sustain a bid above 12558, THEN initial upside estimate targets 12590 – 12600 zone.

Bear Scenario: IF Bears sustain an offer below 12558, THEN initial downside estimate targets 12530 – 12510 zone.

Range Projections and Key Levels (NQ) December 2020 (Z) Contract

HOD  ATR Range Projection: 12672; LOD ATR Range Projection: 12455; 3 Day Central Pivot: 12516; 3 Day Cycle Target: 12802; 10 Day Average True Range: 144; VIX: 22

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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