Markets
U.S. stock index futures inched between gains and losses overnight following a steady August rally that pushed the S&P 500 to the cusp of fresh record high on Wednesday.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Import/Export Prices
10:30 EIA Natural Gas Inventory
Traders are eyeing the latest round of jobless claims this morning, which are expected to have declined for a second straight week to 1.12M (from 1.186M).
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): Opening Range Gap Up with a sustained bid carried price higher throughout the session, skimming near an all-time high but was rejected closing near VAL (3370). Range was 56.25 handles on 1.366M contracts traded.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price has pulled back from PH (3375.75) but maintaining firm bid pre-RTH. We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3370, initially targeting 3380 – 3385 zone. Upper Cycle Targets measure 3405 – 3410 zone.
2.) Price sustains an offer below 3370, initially targeting 3360 – 3355 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3379 PVA Low Edge = 3362 Prior POC = 3370
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3404; LOD ATR Range Projection: 3338; 3 Day Central Pivot: 3350; 3 Day Cycle Target: 3405; 10 Day Average True Range 38; VIX: 22
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…3 Day Cycle Objective (11168) has been fulfilled. Today we have two scenarios to consider:
PVA High Edge = 11148 PVA Low Edge = 11041 Prior POC = 11149
Bull Scenario: IF Bulls sustain a bid above 11100, THEN initial upside estimate targets 11168 – 11186 zone.
Bear Scenario: IF Bears sustain an offer below 11100, THEN initial downside estimate targets 11080 – 11050 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11304; LOD ATR Range Projection: 10954; 3 Day Central Pivot: 11030; 3 Day Cycle Target: 11168; 10 Day Average True Range: 197; VIX: 22
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