Markets
Futures rise after volatile session
U.S. stock futures moved higher in overnight trade following a stunning reversal on Monday as California rolled back its reopening plans, triggering worries about another coronavirus lockdown. Contracts tied to the Dow, S&P 500 and Nasdaq are all up 0.4% as investors get ready for earnings reports from some of the nation’s largest banks.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Consumer Price Index
8:55 Redbook Chain Store Sales
2:00 PM Fed’s Brainard Speech
2:30 PM Fed’s Bullard: U.S. Monetary and Economic Policy
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Early strength which pushed price to upper Penetration Levels during morning session, sharply reversed direction during afternoon session, closing near lows of day. Over an 80 handle reversal.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently trading higher, but only by about 20 handles from prior low 3140.50. Not particularly a sign of strength. Simply more of lack of additional sellers. We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3155, initially targeting 3170- 3180 zone.
2.) Price sustains an offer below 3155 initially targeting 3140 – 3125 zone.
P -VA High = 3224 P – VA Low = 3187 P – POC = 3218
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3199; LOD ATR Range Projection: 3109; 3 Day Central Pivot: 3155; 3 Day Cycle Target: 3212; 10 Day Average True Range 50; VIX: 31
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is currently trading above prior low (10561.50) but not a strong sign of strength. We have two scenarios to consider for today’s trading:
P – VA High = 11060 P – VA Low = 10840 P – POC = 10984
Bull Scenario: IF Bulls sustain a bid above 10625, THEN initial upside estimate targets 10695 – 10730 zone.
Bear Scenario: IF Bears sustain an offer below 10625, THEN initial downside estimate targets 10560 – 10530 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10816; LOD ATR Range Projection: 10432; 3 Day Central Pivot: 10730; 3 Day Cycle Target: 10885; 10 Day Average True Range: 216; VIX: 31
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