Markets
Looking to extend the recent rally in equities and close Q1 on a more positive note, futures climbed another 0.7% overnight, building on yesterday’s gains that saw the S&P 500 soar 3.4% and Dow jump nearly 700 points.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:45 Chicago PMI
10:00 Consumer Confidence
3:00 PM Farm Prices
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
Price across indexes are in negative territory during GLOBEX Session.
***IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 57 and ATR (10) 153 handles. Average Rotation: 25 handles.
S&P 500
Prior Session was Cycle Day 2…Textbook CD2 as price initially violated CD1 Low (2505.25), then recovered back above. Rallying throughout the session, price surpassed the CD2 average range objective reaching 2620 Price Balance Target (PBT) posted in Trading Room. Link to: PTG Chat Log 3.30.20
…Transition from Cycle Day 2 to Cycle Day 3
Today is a Cycle Day 3 (CD3)…Markets are slightly off highs from previous session, but still have a firm underlying bid. Bulls will be looking to extend gains, although Cycle Objectives have been fulfilled, we won’t rule out a pullback to absorb rally gains. Three-Day Central Pivot Zone (2569 – 2539) is expected to offer support should price decline.
PVA High Edge = 2616 PVA Low Edge = 2575 Prior POC = 2592
Bull Scenario: IF Bulls hold bid above 2590, THEN initial upside estimate targets 2610 – 2620 zone.
Bear Scenario: IF Bears hold offer below 2590, THEN initial downside estimate targets 2580 – 2570 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2700.00; LOD ATR Range Projection: 2524.00; 3 Day Central Pivot: 2554.00; 3 Day Cycle Target: 2590.00; 10 Day Average True Range 153.00; VIX: 57
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price fulfilled CD3 Penetration Zones between 7908 – 7958 and was rejected during GLOBEX Session. Price is currently trading below prior close (7853.25). Bulls will need to keep bid above while Bears see an opening to press lower. Cycle Objectives have been fulfilled, as such price can freely float in search of balance.
PVA High Edge = 7868 PVA Low Edge = 7770 Prior POC = 7820
Bull Scenario: IF Bulls hold bid above 7820, THEN initial upside estimate targets 7850 – 7885 zone.
Bear Scenario: IF Bears hold offer below 7820, THEN initial downside estimate targets 7800 – 7770 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8140.00; LOD ATR Range Projection: 7624.00; 3 Day Central Pivot: 7686.00; 3 Day Cycle Target: 7822.00; 10 Day Average True Range: 435.00; VIX: 57
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.
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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