Markets
Speculative excess has surged to the highest in at least two decades among U.S. options traders and not a single stock in the S&P 500 index is down for the past 10 weeks.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
10:00 Job Openings and Labor Turnover Survey
10:00 Wholesale Trade
1:00 PM Results of $29B, 10-Year Note Auction
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Price continued the rally fulfilling this Cycle’s Objectives. Market-On-Close Buy $4B capped the session.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is for some magnitude decline with average measuring 3205, which has been fulfilled during GLOBEX Session. Support is marked at 3200 – 3205 zone. Resistance marked at 3210.
P-VA High = 3210 P-VA Low = 3189 P-POC = 3205
Bull Scenario: IF Bulls hold bid above 3205, THEN initial upside estimate targets 3210 – 3215 zone
Bear Scenario: IF Bears hold offer below 3205, THEN initial downside estimate targets 3195 – 3190 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 3252; LOD ATR Range Projection: 3181; 3 Day Central Pivot: 3164; 10 Day Average True Range 49; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price has declined fulfilling CD1 Average Decline (9835). Initial support is marked at 9808 handle and initial resistance 9860 handle.
P-VA High = 9863 P-VA Low = 9790 P-POC = 9808
Bull Scenario: IF Bulls hold bid above 9835, THEN initial upside estimate targets 9850 – 9860 zone.
Bear Scenario: IF Bears hold offer below 9835, THEN initial downside estimate targets 9815 – 9810 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 10000; LOD ATR Range Projection: 9734; 3 Day Central Pivot: 9750; 10 Day Average True Range: 173; VIX: 26
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