Markets
U.S. stocks look set to climb again, with Dow futures up 0.7% and S&P 500/Nasdaq futures ahead by 0.5%, after a bout of volatility that had tested the market’s month long rebound.
Source: SeekingAlpha.com
Economic Calendar
9:00 Fed’s Mester Speech
9:00 FHFA House Price Index
9:45 PMI Composite Flash
10:00 Powell Testifies Before the House Select Subcommittee
10:30 EIA Petroleum Inventories
11:00 Fed’s Evans: Economic Outlook
11:30 Results of $22B, 2-Year FRN Auction
12:00 PM Fed’s Rosengren Speech
1:00 PM Results of $53B, 5-Year Note Auction
1:00 PM Fed’s Bostic Speech
1:00 PM Fed’s Kashkari Speech
3:00 PM Fed’s Daly Speech
https://www.investing.com/economic-calendar/
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S&P 500
***Written 8 pm Tuesday evening for Wednesday’s trading
Tuesday’s Session was Cycle Day 1 (CD1): Price established CD1 Low (3256.50) during GLOBEX Session and was successfully tested during RTH Session. Once this level was found to be “secure”, afternoon rally began in earnest, closing near highs of the day.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has rallied approximately three-fourths of projected range, targeting the 3316 cycle objective. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3290, initially targeting 3310 – 3316 zone and extended target measuring 3326.
2.) Price sustains an offer below 3290, initially targeting 3270 – 3265 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3290 PVA Low Edge = 3264 Prior POC = 3272
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3346; LOD ATR Range Projection: 3322; 3 Day Central Pivot: 3293; 3 Day Cycle Target: 3316; 10 Day Average True Range 82; VIX: 26.50
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has continued prior session rally fulfilling today’s cycle objective at 11189, but has given back those gains pre-RTH. Price is currently trading back within prior value zone. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11170 PVA Low Edge = 10948 Prior POC = 11015
Bull Scenario: IF Bulls sustain a bid above 11130, THEN initial upside estimate targets 11160 – 11200 zone.
Bear Scenario: IF Bears sustain an offer below 11130, THEN initial downside estimate targets 11100 – 10076 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: 10968; 3 Day Cycle Target: 11189; 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!
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.
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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