Markets
Stocks are on the rise alongside safe-haven assets ahead of an upcoming Fed meeting that will yield clues on what comes next for monetary policy. S&P 500 futures advanced 0.6% overnight.
Source: https://seekingalpha.com/
Economic Calendar
8:30 Durable Goods
10:30 Dallas Fed Manufacturing Survey
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Normal CD1 Session as price continued its decline from CD3, establishing a CD1 Low (3191.50). Range was 47.50, matching the 10-day sequential average.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading near highs of GLOBEX Session, but still a distance from prior high (3239). We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3213, initially targeting 3228 – 3238 zone.
2.) Price sustains an offer below 3213, initially targeting 3203 – 3190 zone.
P -VA High = 3213 P – VA Low = 3201 P – POC = 3208
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3241; LOD ATR Range Projection: 3192; 3 Day Central Pivot: 3237; 3 Day Cycle Target: 3259; 10 Day Average True Range 47; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is currently trading prior high (10597) and has fulfilled 10560 CD2 average rally objective. We have two scenarios to consider for today’s trading:
P – VA High = 10504 P – VA Low = 10413 P – POC = 10490
Bull Scenario: IF Bulls sustain a bid above 10535, THEN initial upside estimate targets 10565 – 10585 zone.
Bear Scenario: IF Bears sustain an offer below 10535, THEN initial downside estimate targets 10505 – 10490 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10567; LOD ATR Range Projection: 10330; 3 Day Central Pivot: 10656; 3 Day Cycle Target: 10560; 10 Day Average True Range: 266; 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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