Trade Strategy 5.11.20

Markets

Traders are kicking off the week with some mixed feelings as U.S. stock index futures wavered between gains and losses overnight. As of the last reading, S&P 500 futures were off 0.7%, signaling weakness in the wake of last week’s economy-defying rally, while oil fell 3% to under $24/bbl.

U.S. stock index futures are trading higher .5% – 0.7% during GLOBEX

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar https://www.investing.com/economic-calendar/

12:30 PM Fed’s Evans Speech
1:00 PM Results of $42B, 3-Year Note Auction

S&P 500

Prior Session was Cycle Day 3 (CD3): Price rallied fulfilling 3 Day Cycle Objectives and extended to Penetration Levels fulfilling Positive 3 Day Cycle Statistic and closing near session highs.

Transition from Cycle Day 3 to Cycle Day 1

This leads us into Cycle Day 1 (CD1): Price rallied early during GLOBEX reaching CD1 Penetration Level (2943) and was rejected selling down throughout the overnight, currently trading near session lows.

Today being Cycle Day 1 (CD1), normal is for some magnitude decline with Average Decline measuring 2907 which has been fulfilled.

P-VA High = 2917       P-VA Low = 2903         P-POC = 2908

Bull Scenario: IF Bulls hold bid above 2900, THEN initial upside estimate targets 2920 – 2930 zone

Bear Scenario: IF Bears hold offer below 2900, THEN initial downside estimate targets 2890 – 2880 zone.

Range Projections and Key Levels (ES) June 2020 (M) Contract

HOD  ATR Range Projection: 2952; LOD ATR Range Projection: 2893; 3 Day Central Pivot: 2878; 3 Day Cycle Target: 2976; 10 Day Average True Range 59; VIX: 30.58

Nasdaq 100 (NQ)

Today is Cycle Day 1 (CD1)…Price has reversed from CD1 Penetration Level during GLOBEX currently trading near lows having fulfilled (9173.50) Average Decline Level. Further weakness targets (9135) ATR (3) and (9103) Prior Low.

P-VA High = 9212           P-VA Low = 9165          P-POC = 9203

Bull Scenario: IF Bulls hold bid above 9165, THEN initial upside estimate targets 9175 – 9195 zone.

Bear Scenario: IF Bears hold offer below 9165, THEN initial downside estimate targets 9135 – 9103 zone.

Range Projections and Key Levels (NQ) June 2020 (M) Contract

HOD  ATR Range Projection: 9296; LOD ATR Range Projection: 9135; 3 Day Central Pivot: 9068; 3 Day Cycle Target: 9150; 10 Day Average True Range: 187; VIX: 30.58

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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