Trade Strategy 8.5.19

Markets

Another round of selling is taking place across the globe following the worst week of the year for the S&P 500. It all started with the Fed’s more-hawkish-than-expected policy outlook, but quickly morphed into trade uncertainty as tensions between Washington and Beijing re-escalated. Amid a sea of red in Asia and Europe overnight, Dow futures are now off by 330 points and the S&P 500 and Nasdaq are down 1.3% and 1.7%, respectively. With new risks from trade wars, stocks head into the final weeks of summer vulnerable to a pullback or even correction.

In Asia, Japan -1.7%. Hong Kong -2.9%. China -1.6%. India -1.1%. 
In Europe, at midday, London -2%. Paris -2%. Frankfurt -1.6%. 
Futures at 6:20, Dow -1.2%. S&P -1.3%. Nasdaq -1.7%. Crude -0.7% to $55.26. Gold +0.8% to $1469.10. Bitcoin +9% to $11703. 
Ten-year Treasury Yield -9 bps to 1.76%

Source: Seeking Alpha https://seekingalpha.com

Economic Calendar https://www.investing.com/economic-calendar/

9:45PMI Services Index
10:00ISM Non-Manufacturing Index
12:30 PMTD Ameritrade IMX

***PTG Trading Room Chat Log’s Link

S&P 500

Today is Cycle Day 2 (CD2)…Price is furthering its decline overnight as Trade War and possible Currency War with China escalates. With “Risk-Off” being the current theme, it’s not time to be bold…Be sure you have your risk-management plan solidly in-place.

CD2 Range High = 2910       CD2 Range Low = 2902    CD2 Range Avg = 31.50

Scenario 1: IF Bulls hold bid above 2900, THEN initial upside potential targets 2910 – 2913 zone.

Scenario 2: IF Bears hold offer below 2900, THEN initial downside objective targets 2888 – 2887 zone.

Range Projections and Key Levels (ES) September 2019 (U) Contract

HOD  ATR Range Projection: 2922.00; LOD ATR Range Projection: 2898.00; 3 Day Central Pivot: 2963.00; 3 Day Cycle Target: 2953.00; 10 Day Average True Range 36.00: VIX: 18.00

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Price is furthering its decline overnight as Trade War and possible Currency War with China escalates. With “Risk-Off” being the current theme, it’s not time to be bold…Be sure you have your risk-management plan solidly in-place.

CD2 Range High = 7656          CD2 Range Low = 7590          CD2 Range Avg = 112.50

Scenario 1: IF Bulls hold bid above 7590, THEN initial upside potential targets 7616 – 7619 zone.

Scenario 2: IF Bears hold offer below 7590, THEN initial downside objective targets 7552 – 7535 zone.

Range Projections and Key Levels (NQ) September 2019 (U) Contract

HOD  ATR Range Projection: 7678.00; LOD ATR Range Projection: 7570.00; 3 Day Central Pivot: 7519.00; 3 Day Cycle Target: 7790.00; 10 Day Average True Range: 134.61; VIX: 18.00

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.

Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.

This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

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


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