Dow and S&P 500 futures are up by 0.8%, while the Nasdaq powers ahead by 1.2% after another day of record highs.
The remainder of the week will be dominated by employment figures, with the ADP reporting on private sector hiring today and the biggest report of the month, non-farm payrolls for August, due on Friday morning.
8:15 ADP Jobs Report
10:00 Factory Orders
10:00 Fed’s Williams Speech
10:30 EIA Petroleum Inventories
***New: PTG Trading Room Chat Log’s Link
***Written 8 pm Tuesday evening for Wednesday’s trading
Tuesday’s Session was Cycle Day 1 (CD2): “Buy the Dip” is and continues to be the trade strategy, as any attempt from bears to break uptrend fails, only to reverse and notch new highs daily. Value also continues to increase, so until there is change in that structural condition, trend up remains in-effect. Range was 45.75 handles, above 10-day average of 29, with 1.2M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Bullish price momentum is firmly in-place with nothing but blue-sky above. Next key Cycle Zone measures 3539 – 3542. 3 Day Cycle Target measures 3556 handle. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3525, initially targeting 3539 – 3542 zone. 3 Day Cycle Target measures 3556.
2.) Price sustains an offer below 3525, initially targeting 3515 – 3510 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3494 PVA Low Edge = 3477 Prior POC = 3490
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3513; LOD ATR Range Projection: 3501; 3 Day Central Pivot: 3505; 3 Day Cycle Target: 3556; 10 Day Average True Range 29; VIX: 26.00
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…How do you spell “New All-Time High”. In one word: NASDAQ 100 (NQ). Prior Session’s range was 235.75 handles on 511K contracts traded. Price is well above prior Value Zone so today we have two scenarios to consider:
PVA High Edge = 12280 PVA Low Edge = 12206 Prior POC = 12220
Bull Scenario: IF Bulls sustain a bid above 12328, THEN initial upside estimate targets 12355 – 12420 zone.
Bear Scenario: IF Bears sustain an offer below 12328, THEN initial downside estimate targets 12220 – 12200 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 12264; LOD ATR Range Projection: 12158; 3 Day Central Pivot: 12104; 3 Day Cycle Target: 12354; 10 Day Average True Range: 171; VIX: 26.00
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!
“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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