Markets
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Retail Sales
9:15 Industrial Production
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Early price weakness reversed from 10 day support (3435), and rallied back three-fourths of previous lost ground. Range was was 55.00 on 1.619M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline, with average measuring 3428. Average CD1 Range is 59 handles. Price has extended prior session reversal rally recovering prior CD1 Low (3491) on what is referred to as a “grace-day”. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3475, initially targeting 3500 – 3507 zone.
2.) Price sustains an offer below 3475, initially targeting 3460 – 3455 zone.
P -VA High = 3465 P – VA Low = 3438 P – POC = 3455
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3524; LOD ATR Range Projection: 3438; 3 Day Central Pivot: 3488; 3 Day Cycle Target: 3503; 10 Day Average True Range 54; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is trading above prior value zone and past CD1 upper range projections. As such, there are two scenarios to consider for today’s trading.
P – VA High = 11855 P – VA Low = 11775 P – POC = 11830
Bull Scenario: IF Bulls hold bid above 11915, THEN initial upside estimate targets 11945 – 11998 zone.
Bear Scenario: IF Bears hold offer below 11915, THEN initial downside estimate targets 11854 – 11800 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12080; LOD ATR Range Projection: 11692; 3 Day Central Pivot: 11998; 3 Day Cycle Target: 11915; 10 Day Average True Range: 254; 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.”
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