Things aren’t looking brighter for U.S. equities following Wall Street’s third straight weekly decline, with Dow futures down 2.1% and contracts tied to the S&P 500 and Nasdaq off 1.9%.
8:30 Chicago Fed National Activity Index
6:00 PM Fed’s Williams Speech
6:00 PM Fed’s Kaplan Speech
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 2 (CD2): Price ended last week on a down note and it appears a continuation second leg lower in overnight trade. Range was 82.25 on 2.187M contracts exchanged.
Note: Contract Rollover is now complete with December (Z) the front contract month.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price has continued lower during over night trade fulfilling CD2 Violation Level (3247.50). Price is also below Cycle Day 1 Low (3310.25) and needs to recover this level, otherwise this cycle will have “failed”. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3270, initially targeting 3285 – 3300 zone.
2.) Price sustains an offer below 3270, initially targeting 3250 – 3230 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3328 PVA Low Edge = 3285 Prior POC = 3310
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3447; LOD ATR Range Projection: 3318; 3 Day Central Pivot: 3352; 3 Day Cycle Target: 3380; 10 Day Average True Range 81.50; VIX: 29.60
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Positive 3 Day Cycle statistic has been fulfilled. Prior range 421.00 with 747k contracts exchanged. There are two scenarios to consider for today’s trading:
PVA High Edge = 11163 PVA Low Edge = 10910 Prior POC = 11088
Bull Scenario: IF Bulls sustain a bid above 10775, THEN initial upside estimate targets 10830 – 10880 zone.
Bear Scenario: IF Bears sustain an offer below 10775, THEN initial downside estimate targets 10740 – 10710 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: 11122; 3 Day Cycle Target: 11248; 10 Day Average True Range: 406; VIX: 25
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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