U.S. equity futures held up overnight following another selloff on Wall Street that was led by major tech names. Contracts tied to the Dow and S&P 500 are hugging the flat-line, while Nasdaq futures pared recent losses by climbing 0.6%.
Don’t forget that it’s also quad witching day, which refers to the simultaneous expiration of market index futures, stock futures, market index options and stock options.
8:30 Current Account
10:00 Consumer Sentiment
10:00 Leading Indicators
10:00 Fed’s Bullard: “The Industrial Path to Economic Recovery from Covid-19”
12:00 PM Fed’s Bostic Speech
1:00 PM Baker-Hughes Rig Count
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Volatile session as price oscillated back n forth within a 50 handle range. Deep CD1 Low (3310.25) was put in-place early and appears secure as price maintained bid above this level. Range was 76.25 handles, with 2.477M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently trading near overnight highs with an expected continuation of volatile activity in the wake of QUAD Options Expiry. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3345, initially targeting 3360 – 3380 zone.
2.) Price sustains an offer below 3345, initially targeting 3330 – 3320 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3390 PVA Low Edge = 3372 Prior POC = 3385
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3346; LOD ATR Range Projection: 3322; 3 Day Central Pivot: 3375; 3 Day Cycle Target: 3380; 10 Day Average True Range 82; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is currently trading near overnight high as volatility remains elevated with QUAD Option Expiry. Prior range was 384.25 handles with 765K contracts exchanges. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11087 PVA Low Edge = 11950 Prior POC = 11020
Bull Scenario: IF Bulls sustain a bid above 11100, THEN initial upside estimate targets 11150 – 11200 zone.
Bear Scenario: IF Bears sustain an offer below 11100, THEN initial downside estimate targets 11000 – 10950 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11638; LOD ATR Range Projection: 10994; 3 Day Central Pivot: 11270; 3 Day Cycle Target: 11195; 10 Day Average True Range: 406; 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!
“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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