Trade Strategy 6.18.20

Markets

Futures wavered between slight gains and losses overnight as investors track an uptick in new COVID-19 cases against the reopening of the economy.

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

Source: https://www.investing.com/indices/indices-cfds

Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory

Source: https://www.investing.com/economic-calendar/

S&P 500 (ES)

Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined exceeding fulfilling Average Decline (3070) albeit during Asian Session.

Transition from Cycle Day 1 to Cycle Day 2

This leads us into Cycle Day 2 (CD2): Price has violated Cycle Day 1 Low (3094.50) during overnight trading fulfilling 3070 CD1 Avg Decline and has recovered back above this level pre-RTH. Today we have two scenarios to consider:

Bull Scenario: IF Bulls hold bid above 3094.50, THEN initial upside estimate targets 3110 – 3115 zone

Bear Scenario: IF Bears hold offer below 3094.50, THEN initial downside estimate targets 3075 – 3063 zone zone.

P -VA High = 3123       P – VA Low = 3012        P – POC = 3116

Range Projections and Key Levels (ES) September 2020 (U) Contract

HOD  ATR Range Projection: 3175; LOD ATR Range Projection: 3066; 3 Day Central Pivot: 3082; 3 Day Cycle Target: 3195; 10 Day Average True Range  81; VIX: 35

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price violated Cycle Day 1 Low (9915.25) during Asian Session and has since recovered back above, rallying up to prior VAH (10020). Today we have two scenarios to consider:

P – VA High = 10020       P – VA Low = 9965         P – POC = 9997

Bull Scenario: IF Bulls hold bid above 9980, THEN initial upside estimate targets 10020 – 10050 zone.

Bear Scenario: IF Bears hold offer below 9980, THEN initial downside estimate targets 9950 – 9920 zone.

Range Projections and Key Levels (NQ) September 2020 (U) Contract

HOD  ATR Range Projection: 10154; LOD ATR Range Projection: 9809; 3 Day Central Pivot: 9852; 3 Day Cycle Target: 10236; 10 Day Average True Range: 238; VIX: 35

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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