Trade Strategy 2.25.19

Markets

The Shanghai Composite surged 5.6% overnight, taking the index into bull market territory, after President Trump delayed an increase in tariffs scheduled for March 1. “The U.S. has made substantial progress in our trade talks with China,” he wrote on Twitter. “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement.” The trade optimism is lifting markets across the globe, with Europe ahead by 0.5% at midday and Dow futures flashing triple-digit gains.

8:30 Chicago Fed National Activity Index
10:00 Wholesale Trade
10:30 Dallas Fed Manufacturing Survey
11:30 Results of $40B, 2-Year Note Auction
1:00 PM Results of $41B, 5-Year Note Auction

Source: Seeking Alpha

Economic Calendar

http://mam.econoday.com/

7:00 MBA Mortgage Applications
8:55 Redbook Chain Store Sales
10:00 E-Commerce Retail Sales
11:30 Results of $13B, 2-Year FRN Auction
2:00 PM FOMC minutes
3:00 PM Farm Prices 

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price is trading higher above PH (2795.50) and has extended to 2804.25, fulfilling CD2 Penetration Level. Should there be any pullbacks, we’ll be looking for support at or above prior session range high. Further upside has potential to expand upwards to 2810.50 – 2815 ATR (10) Range Objectives.

CD1 Range High = 2819.00       CD1 Range Low = 2782.00         CD1 Range Avg = 24.00 

Scenario 1: IF price holds bid above 2795.50, THEN initial upside potential targets 2804.25 CD2 Penetration Level. Conversion of this level to support further measures 2816 – 2819 range high zone.

Scenario 2: IF price holds offer below 2795.50, THEN initial downside objective targets 2787.00 – 2782 3 Day Central Pivot Zone / Range Low.

Range Projections and Key Levels (ES) March 2019 (H) Contract

HOD  ATR Range Projection: 2816.00; LOD ATR Range Projection: 2784.00; 3 Day Central Pivot: 2783.00; 3 Day Cycle Target: 2798.25; 10 Day Average True Range 21.50; VIX: 13.50

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is trading higher above PH (27101.25) and has extended to 7123.00, fulfilling CD2 Penetration Level. Should there be any pullbacks, we’ll be looking for support at or above prior session range high. Further upside has potential to expand upwards to 7158.00 – 7170.00 ATR (10) Range Objectives.

CD1 Range High = 7158.00          CD1 Range Low = 7081.50          CD1 Range Avg = 56.25

Scenario 1: IF price holds bid above 7101.25, THEN initial upside potential targets 7123.00 CD2 Penetration Level. Conversion of this level to support further measures 7170.00 – 7175.25 range high zone.

Scenario 2: IF price holds offer below 7101.25, THEN initial downside objective targets 7070.00 – 7065.00 3 Day Central Pivot Zone / Range Low.

Range Projections and Key Levels (NQ) March 2019 (H) Contract

HOD  ATR Range Projection: 7170.00; LOD ATR Range Projection: 7070.00; 3 Day Central Pivot: 7065.00; 3 Day Cycle Target: 7091.00; 10 Day Average True Range: 68.00; VIX: 13.50

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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