Markets
Big banks start reporting Q2 earnings today and investors will be closely watching for signs of how much the Fed’s change in rate policy could hurt the banking business. The rate curve has also been flattening, making it harder for lenders to drive profit through the difference between long- and short-term interest rates. Ahead of the results, U.S. stock index futures are pausing for breath following a record-setting performance on Wall Street last week.
In Asia, Japan closed. Hong Kong +0.3%. China +0.4%. India +0.4%.
In Europe, at midday, London +0.1%. Paris -0.1%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq flat. Crude +0.4% to $60.44. Gold +0.3% to $1417.30. Bitcoin -3.7% to $10319.
Ten-year Treasury Yield +2 bps to 2.14%
Source: Seeking Alpha https://seekingalpha.com
Economic Calendar
8:30Empire State Mfg Survey
8:50Fed’s Williams: “LIBOR Transition Briefing: The Transition to Alternative Reference Rates”
***PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 2 (CD2)…Shallow decline on CD1 lead to yet another incremental all-time high in the indexes. Further movement away from value has price extended with increasing risk of mean reversion.
Continue to stay disciplined to PTG “Core Setups” which are design to keep our traders in-alignment with dominant market forces. Hence, there is no need to worry or be concerned about timing the decline. We’ll know it when it begins to unfold and will be aligned along for the ride.
CD2 Range High = 3035.00 CD2 Range Low = 3000 CD2 Range Avg = 30.50
Scenario 1: IF Bulls hold bid above 3012, THEN initial upside potential targets 3018 – 3022 zone.
Scenario 2: IF Bears hold offer below 3012, THEN initial downside objective targets 3002 – 3000 zone.
Range Projections and Key Levels (ES) September 2019 (U) Contract
HOD ATR Range Projection: 3030.00; LOD ATR Range Projection: 3004.00; 3 Day Central Pivot: 3002; 3 Day Cycle Target: 3030.00; 10 Day Average True Range 19.34: VIX: 12.70
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Shallow decline on CD1 lead to yet another incremental all-time high in the indexes. Further movement away from value has price extended with increasing risk of mean reversion.
Continue to stay disciplined to PTG “Core Setups” which are design to keep our traders in-alignment with dominant market forces. Hence, there is no need to worry or be concerned about timing the decline. We’ll know it when it begins to unfold and will be aligned along for the ride.
CD2 Range High = 8000.00 CD2 Range Low = 7925.00 CD2 Range Avg = 112.50
Scenario 1: IF Bulls hold bid above 7946, THEN initial upside potential targets 7970 – 7981 3 Day Target Zone.
Scenario 2: IF Bears hold offer below 7946, THEN initial downside objective targets 7928 – 7922 3 Day Central Pivot Zone.
Range Projections and Key Levels (NQ) September 2019 (U) Contract
HOD ATR Range Projection: 8016.00; LOD ATR Range Projection: 7907.00; 3 Day Central Pivot: 7922.00; 3 Day Cycle Target: 7981.00; 10 Day Average True Range: 75.19; VIX: 12.70
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