Markets
U.S. equity index futures are off 0.3% ahead of the big event at Jackson Hole, which could also outline how long the Fed’s near-zero interest rate environment might last and assess the monetary policy response to the coronavirus pandemic.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Initial Jobless Claims
8:30 GDP Q2
8:30 Corporate profits
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $47B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Source: https://www.investing.com/economic-calendar/
Jackson Hole Speaker Schedule
9:00 Fed’s George: “Navigating the Decade Ahead: Implications for Monetary Policy”
9:10 Jerome Powell: “Monetary Policy Framework Review”
12:30 PM Fed’s Barkin Speech
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): 3 Day Positive Cycle Statistics were fulfilled as price closed near high of day and new all-time high.. Range was 46.75 handles and 1.244K contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is backing off from prior high in light overnight trade. Normal expectation for CD1 is some magnitude decline with average measuring 3428.25. Bulls are maintaining firm bid above prior POC >>> 3468.
Price is currently trading within prior value, As such we have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3468, initially targeting 3475 – 3478 zone.
2.) Price sustains an offer below 3468, initially targeting 3458 – 3450 zone.
P -VA High = 3478 P – VA Low = 3462 P – POC = 3468
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3465; LOD ATR Range Projection: 3456; 3 Day Central Pivot: 3440; 10 Day Average True Range 28; VIX: 23
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is holding firm bid pre-RTH having notched all-time high during prior session. Price is trading within prior value. As such we have two scenarios to consider for today’s trading.
P – VA High = 11977 P – VA Low = 11819 P – POC = 11925
Bull Scenario: IF Bulls hold bid above 11925, THEN initial upside estimate targets 11985 – 12004 zone.
Bear Scenario: IF Bears hold offer below 11925, THEN initial downside estimate targets 11886 – 11846 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11895; LOD ATR Range Projection: 11834; 3 Day Central Pivot: 11739; 10 Day Average True Range: 168; VIX: 23
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
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