Markets across Asia and Europe were mostly higher overnight, though shares in Shanghai dipped 0.3%. Nasdaq Composite posted another record close on Tuesday (though the Dow and S&P drifted lower), while stock index futures are now pointing to opening gains of 0.2%.
In Asia, Japan +0.9%. Hong Kong +0.5%. China -0.3%. India +1.1%.
In Europe, at midday, London +0.8%. Paris +0.6%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +1.4% to $53.01. Gold +0.7% to $1614. Bitcoin +4.3% to $10136.
Ten-year Treasury Yield flat at 1.55%
Source: Seeking Alpha https://seekingalpha.com/
8:30 Housing Starts
8:30 Producer Price Index
8:30 Fed’s Mester Speech
8:55 Redbook Chain Store Sales
10:00 E-Commerce Retail Sales
10:00 Quarterly Services Report (Advance)
11:45 Fed’s Kashkari Speech
1:30 PM Fed’s Kaplan Speech
2:00 PM FOMC minutes
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 3 (CD3)…Despite the negative news with Apple Computer initially dragging down S&P 500, price still managed to successfully retest and close above the Cycle Day 1 Low. In doing so, fulfills the Positive 3 Day Cycle Statistic, which has a 91% historical track record covering 10 years.
This leads us into today’s Cycle Day 1 (CD1)…Normal expectation for CD1 is for some magnitude decline with an average measuring 3355 – 3350 zone, which was actually fulfilled during CD3.
So main question becomes…Was decline deep enough on CD3 to satisfy market participants to “buy the dip”? IF yes, THEN price is likely to continue rallying to recover the CD3 open gap. IF no, THEN price may need to retest CD3 Low (3355.25) for surety of a “secure” low.
In either case, trading is expected to provide nimble traders ample opportunities for profitable trade. Stay Flexible! Always Honor Thy Stops!
CD1 Range High = 3395.00 CD1 Range Low = 3358.00 CD1 Range Avg = 31.50
Bull Scenario: IF Bulls hold bid above 3373, THEN initial upside targets 3382 – 3388 zone
Bear Scenario: IF Bears hold offer below 3373, THEN initial downside targets 3366 – 3364 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 3397.00; LOD ATR Range Projection: 3356.00; 3 Day Central Pivot: 3378.00; 3 Day Cycle Target: 3400.00; 10 Day Average True Range 24.00; VIX: 14.40
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 9559.00. Average Range for CD1 is 112.25 handles. Odds of decline > 20 handles = 75% Odds of decline > 25 = 67%
CD1 Range High = 9700.00 CD1 Range Low = 9618.00 CD1 Range Avg = 112.25
Bull Scenario: IF Bulls hold bid above 9655, THEN initial upside targets 9677 – 9694 zone.
Bear Scenario: IF Bears hold offer below 9655, THEN initial downside targets 9640 – 9633 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 9736.00; LOD ATR Range Projection: 9583.00; 3 Day Central Pivot: 9633.00; 3 Day Cycle Target: 9715.00; 10 Day Average True Range: 95.00; VIX: 14.40
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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