In Europe, at midday, London flat. Paris +0.4%. Frankfurt +1.1%.
Futures at 6:20, Dow +0.1%. S&P -0.2%. Nasdaq -0.9%. Crude -0.1% to $69.24. Gold -0.3% to $1227.80. Bitcoin +1.4% to $8278.
Ten-year Treasury Yield +3 bps to 2.96%
8:30 Durable Goods
8:30 International trade in goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $30B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P 500
Today is Cycle Day 2 (CD2)…Shallow CD1 decline ignited strong rally which exceeded 3 Day Cycle and Penetration Levels. Price is trading lower in quiet consolidation during overnight session following FaceBook’s (FB) disappointing earnings report. Market remains in a bullish uptrend channel configuration.
Market Bias: Short-term Bullish
CD2 Range High = 2859.75 CD2 Range Low = 2813.00 CD2 Range Avg = 26.50
Scenario 1: IF price clears and converts 2840 to support, THEN upside targets 2845- 48 zone.
Scenario 2: If price holds offer below 2840 and subsequently violates 2833, THEN downside targets 2830 – 28 zone.
Range Projections and Key Levels (ES) September (U) Contract
HOD ATR Range Projection: 2853.50; LOD ATR Range Projection: 2819.25; Cycle Day 1 Low: 2814.00; 3 Day Central Pivot: 2820.75; 3 Day Cycle Target: 2822.50; 10 Day Average True Range 20.00; VIX: 12.17
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Shallow CD1 decline ignited strong rally which exceeded 3 Day Cycle and Penetration Levels. Price is trading lower in quiet consolidation during overnight session following FaceBook’s (FB) disappointing earnings report. Market remains in a bullish uptrend channel configuration.
Market Bias: Short-term Bullish
CD2 Range High = 7480.00 CD2 Range Low = 7338.25 CD2 Range Avg = 91.50
Scenario 1: IF price clears and converts 7430 to support, THEN upside targets 7440 – 7455 zone.
Scenario 2: If price holds offer below 7430 and subsequently violates 7396, THEN downside targets 7378 – 7355 zone.
Range Projections and Key Levels (NQ) September (U) Contract
HOD ATR Range Projection: 7471.75; LOD ATR Range Projection: 7346.75; Cycle Day 1 Low: 7402.75; 3 Day Central Pivot: 7429.25; 3 Day Cycle Target: 7453.50; 10 Day Average True Range: 83.00; VIX: 12.17
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