Polaris Trading Group: Taylor 3 Day Cycle Commentary Author: David D Dube (PTGDavid)
***Written 8 pm Tuesday evening for Wednesday’s trading
Tuesday’s Session was Cycle Day 1 (CD1): Activity unfolded as a Normal CD1 with price declining to the projected Average Decline (3495). Range was 44.25 handles on 1.593M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently in a corrective swing condition down with 3495 as “key reference support”. Bulls need to clear and convert 3514 prior-POC to turn down swing momentum. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3514, initially targets 3523 – 3528 zone.
2.) Price sustains an offer below 3514, initially targets 3495 – 3485 zone.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >> Cycle Day 2 (CD2)
Thanks for reading,
Polaris Trading Group
In the Tradechat Room
The MIM was signalling that the MOC was going to be small and it was, bouncing around +/- 200 mil at the reveal and creating an indecisive 15:50 candle.
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Chart of the Day
|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3535.75||Opening Print: 3523.50|
|Low: 3510.00||High 3524.75|
|Volume: 350,000||Low: 3491.50|
|ES Settlement 3505.25|
|Total Volume 1.6 M|
S&P 500 RECAP – Trade Date 10/13/ 2020
#ES Money Maker Chart
S&P 500 Futures: Turnaround Tuesday Retest Of #ES 3500
After trading in a 25.75-handle range leaning lower, the S&P 500 futures opened Tuesday’s cash session at 3523.50, up 10.75 handles, made a daily high of 3524.75 on the open and then began to sell the rest of the morning in an orderly fashion trading down to 3506.50 at 9:45 CT. Then after bouncing to a midmorning high of 3519.75, sell momentum continued pushing the index lower selling into the mid-afternoon low of 3491.50 which would be the daily low.
The S&Ps did bounce in the final hour of the session trading up to 3515.75 before falling back to settle at 3505.25, down 29.00 handles or -0.90% on a total volume of 1.6 million. In terms of the overall price action, it was all about selling the open and fading any rally. In terms of the day’s overall trade, volume was higher but that’s just because the ES sold off.
Buy TECH; Forget The Rest
Just sell every stock you have and buy FAANG. At least that’s the way it seems. Yesterday, JPMorgan reported better-than-expected Q3 earnings, but the stock dropped 1.7% and Citi fell 5% after releasing its numbers. In all honesty, the ES did what I thought it would do but I didn’t cover my short after Johnson & Johnson reported better than expected earnings but said it has halted its coronavirus vaccine trials due to a participant becoming unexpectedly sick. When it comes to a COVID19 vaccine I think we are a long way off from getting something that will be a long term solution. Additionally, they say the virus is now mutating. I hate to say this but I don’t think we will see any real progress till the end of next summer at the earliest.
Our view, it’s almost ridiculous that the ES can only pull back 50 handles after such a giant run. The ES just cannot sustain a big drop without the tech stocks leading the way. Our lean is to sell the early rallies and buy the pullbacks.
Market Vitals Technical Analysis
Did you know that your premium membership gives you access to our Market Vitals? Click on the image below and get today’s key levels.
As always, please use protective buy and sell stops when trading futures and options.
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