In Europe, at midday, London +0.3%. Paris +0.2%. Frankfurt +0.2%.
Futures at 6:20, Dow -0.1%. S&P flat. Nasdaq -0.2%. Crude +1% to $62.75. Gold -0.4% to $1312.20. Bitcoin -1.6% to $8458.
Ten-year Treasury Yield +2 bps to 2.86%
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2702.50.. Average Range for CD1 is 41.94 handles. Odds of decline > 10 handles = 71% Odds of decline > 20 = 41% Possible CD1 Range Low = 2685.50.
Prior Session’s decline which was greater than normal fulfilled Cycle Day 1 objective of 2702.50. Potential for a retest of this low exists for surety
Scenario 1: Bulls need to hold firmly above 2710 handle and convert 2728 to support for recovery rally to continue targeting 2734 – 38 zone.
Scenario 2: Bears need a violation and conversion below 2710 to retest prior low (2697.25) IF this occurs and violated, THEN door is open targeting 2693 down through 2681 zone.
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 6857.25. Average Range for CD1 is 115.88 handles. Odds of decline > 20 handles = 72% Odds of decline > 25 = 63% Possible CD1 Range Low = 6878.75.
Scenario 1: Bulls need to keep PC (6915.50) solidly bid for further recovery rally to unfold targeting 6960 – 70 zone.
Scenario 2: Bears need to keep solid offer below PC (6915.50) and press for a retest of PL (6821.25).
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6988.36; LOD ATR Range Projection: 6798.39; Cycle Day 1 Low: 7124.00; 3 Day Central Pivot: 7018.00; 3 Day Cycle Target: 7205.00; 10 Day Average True Range: 113.36; VIX: 18.60
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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