September has already seen some volatile moves for markets and tonight’s highly anticipated debate between President Trump and Joe Biden may go some way in providing clarity for investors.
Markets
U.S. stock index futures largely hugged the flatline overnight after House Democrats released a $2.2T coronavirus relief proposal (that would restore the $600 weekly jobless benefit), though the figure remains above what Senate Republicans have said they would accept.
Source: SeekingAlpha.com
Economic Calendar
8:30 International trade in goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): Continuation rally fulfilled and exceeded cycle price targets in fine fashion. Market on Close Sell Imbalance of $2.7 billion capped the session and was easily absorbed. Range was 63.75 handles on 1.471M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently trading within prior value zone in relatively low volume. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3340, initially targeting 3360 – 3365 zone.
2.) Price sustains an offer below 3340, initially targeting 3330 – 3325 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3348 PVA Low Edge = 3333 Prior POC = 3340
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3398; LOD ATR Range Projection: 3297; 3 Day Central Pivot: 3276; 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 within prior value zone in relatively quiet overnight session. This cycle’s price objectives have been fulfilled. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11220 PVA Low Edge = 10936 Prior POC = 11085
Bull Scenario: IF Bulls sustain a bid above 11350, THEN initial upside estimate targets 11400 – 11450 zone.
Bear Scenario: IF Bears sustain an offer below 11350, THEN initial downside estimate targets 11300 – 11265 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11635; LOD ATR Range Projection: 11147; 3 Day Central Pivot: 10070; 3 Day Cycle Target: 11140; 10 Day Average True Range: 302; 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!
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