Markets
The risk-on mood spread across the globe overnight, tracking an end-of-week rally in U.S. stocks as traders look to the start of earnings season for further clues on how companies are planning for the future. The Nikkei and Shanghai climbed about 2%, the Euro Stoxx 50 is 1% higher, while U.S. stock index futures are ahead by 0.6%.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
11:30 Fed’s Williams: “LIBOR: Entering the Endgame”
1:00 PM Fed’s Kaplan Speech
2:00 PM Treasury Budget
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Positive 3 Day Cycle capped the previous week, as new all-time highs continue to be made in the NASDAQ.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Continuing the current rally as price is trading above PH (3181.28). We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3181, initially targeting 3203 – 3205 zone.
2.) Price sustains an offer below 3181 initially targeting 3165 – 3155 zone.
P -VA High = 3160 P – VA Low = 3127 P – POC = 3152
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3161; LOD ATR Range Projection: 3127; 3 Day Central Pivot: 3148; 10 Day Average True Range 50; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is continuing prior week’s rally pushing above PH (10847.50) fulfilling CD1 Penetration Level (10911.50). Today we have two scenarios to consider:
P – VA High = 10748 P – VA Low = 10738 P – POC = 10612
Bull Scenario: IF Bulls hold bid above 10850, THEN initial upside estimate targets 10910 – 10940 zone.
Bear Scenario: IF Bears hold offer below 10850, THEN initial downside estimate targets 10830 – 10790 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10819; LOD ATR Range Projection: 10636; 3 Day Central Pivot: 10688; 10 Day Average True Range: 194; VIX: 28
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.”
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