U.S. stock futures are pointing up more than 1% ahead of a light earnings and conference calendar. Underpinning some of the investor optimism are renewed hope over a new stimulus deal making its way out of Washington D.C. in the next few weeks and a wave of M&A talk.
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Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined and established early session low (3206.50) at which time this cycle’s rally began. Price closed near highs of session. Range was 89.75 handles on 1.584M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently continuing the rally, pushing above CD2 projected Penetration Level (3311.25) and closing in on CD2 Range High projection (3340). As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3330, initially targeting 3335 – 3340 zone.
2.) Price sustains an offer below 3330, initially targeting 3320 – 3310 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3265 PVA Low Edge = 3214 Prior POC = 3225
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3353; LOD ATR Range Projection: 3267; 3 Day Central Pivot: 3252; 3 Day Cycle Target: 3270; 10 Day Average True Range 66; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently trading above prior session’s range, continuing and exceeding this cycle’s rally projection levels. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11140 PVA Low Edge = 10908 Prior POC = 11138
Bull Scenario: IF Bulls sustain a bid above 11270, THEN initial upside estimate targets 11320 – 11340 zone.
Bear Scenario: IF Bears sustain an offer below 11270, THEN initial downside estimate targets 11240 – 11220 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11447; LOD ATR Range Projection: 11032; 3 Day Central Pivot: 10946; 3 Day Cycle Target: 11100; 10 Day Average True Range: 307; VIX: 27
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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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