Nasdaq futures climbed 0.6% in overnight trading, while contracts tied to the Dow and S&P largely hugged the flatline, after global stocks hit the skids on Monday.
Can markets break the September selloff cycle? Since 1937, the S&P 500 has declined 1% over the month, on average, while the Nasdaq Composite has seen an average fall of 0.5%.
8:55 Redbook Chain Stores Sales
10:00 Existing Home Sales
10:00 Fed’s Evans: Economic Outlook
10:00 Richmond Fed Mfg.
10:30 Powell Testifies Before the House Financial Services Committee
12:00 PM Fed’s Barkin Speech
1:00 PM Results of $52B, 2-Year Note Auction
3:00 PM Fed’s Bostic: “Cash-Based Consumers and the Digital Economy”
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Similar to the prior CD3, price declined sharply on increased volume and negative breadth. Late day rally saved it from being a total loss. Market on Close Sell Imbalance $500M capped the session. Range was 108.50 handles (1.3x average) with 2.452M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is holding bid during overnight session, with a slight decline to 3256.50. Bulls will need to hold this low and expand further during RTH to recapture lost CD1 Low (3310.25). As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3270, initially targeting 3290 – 3300 zone.
2.) Price sustains an offer below 3270, initially targeting 3255 – 3245 zone.
P -VA High = 3255 P – VA Low = 3222 P – POC = 3240
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is trading above prior close following a sharp decline in prior session. As such, there are two scenarios to consider for today’s trading.
P – VA High = 10847 P – VA Low = 10714 P – POC = 10810
Bull Scenario: IF Bulls hold bid above 10985, THEN initial upside estimate targets 11050 – 11065 zone.
Bear Scenario: IF Bears hold offer below 10985, THEN initial downside estimate targets 10960 – 10935 zone.
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.
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