Trade Strategy 2.26.19

Markets

Oil suffered its worst YTD price decline on Monday, tumbling from three-month highs after President Trump lashed out at crude prices. April WTI settled down 3.1% at $55.48/bbl, while Brent closed 3.5% lower at $64.76/bbl. While the message immediately flipped investor sentiment, some analysts doubt that OPEC will heed Trump’s advice and say prices could rebound in the coming days

In Asia, Japan -0.4%. Hong Kong -0.7%. China -0.7%. India -0.7%. 
In Europe, at midday, London -1.1%. Paris -0.3%. Frankfurt -0.3%. 
Futures at 6:20, Dow -0.3%. S&P -0.3%. Nasdaq -0.4%. Crude -0.3% to $55.29. Gold -0.2% to $1326.90. Bitcoin +0.4% to $3791.

(Source: Seeking Alpha)  

Economic Calendar

http://mam.econoday.com/

8:30 Housing Starts
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
9:45 Powell to deliver semi-annual monetary policy report
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
1:00 PM Results of $32B, 7-Year Note Auction

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

S&P 500

Today is Cycle Day 3 (CD3)…Price has already fulfilled 3 Day Cycle Target Objectives (2798) and is now trading below Prior Weeks High (2798) back into prior session’s range. Bulls could not hold a firm bid and being that the current rally is somewhat “long in the tooth” price is vulnerable to a deeper decline should buyers step aside.

CD3 Range High = 2806.75          CD3 Range Low = 2772.50          CD3 Range Avg = 23.50 

Scenario 1: IF price holds bid above 2785.00, THEN initial upside target measures 2798.25 – 2804.25 Central Pivot Zone.

Scenario 2: IF price holds offer below 2785.00, THEN initial downside target measures 2778.50 – 2774.50 CD3 Violation ATR Range Low Zone.

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

HOD  ATR Range Projection: 2804.00; LOD ATR Range Projection: 2774.50; Cycle Day 1 Low: 2770.50; 3 Day Central Pivot: 2779.00; 3 Day Cycle Target: 2798.00; 10 Day Average True Range 22.00; VIX: 15.00

Nasdaq 100 (NQ)

Today is Cycle Day 3 …Price has already fulfilled 3 Day Cycle Target Objectives (7091.00) and is now trading below Prior Weeks High (7113.75) back into prior session’s range. Bulls could not hold a firm bid and being that the current rally is somewhat “long in the tooth” price is vulnerable to a deeper decline should buyers step aside.

CD3 Range High = 7129.50         CD3 Range Low = 7066.50          CD3 Range Avg = 56.00

Scenario 1: IF price holds bid above 7087, THEN initial upside potential targets 7112.00 – 7135.00 zone.

Scenario 2: IF price holds offer below 7087, THEN initial downside targets 7066.50 – 7053.50 ATR Range Low Zone.

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

HOD  ATR Range Projection: 7142.25; LOD ATR Range Projection: 7053.50; Cycle Day 1 Low: 7023.50; 3 Day Central Pivot: 7086.00; 3 Day Cycle Target: 7091.00; 10 Day Average True Range: 69.00; VIX: 15.00

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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