The U.S. stock market took investors for a wild ride in 2015, but in the end it was a trip to nowhere. Equities began the year with a slow start as investors worried about falling crude prices, flat earnings growth and when the Fed would begin raising rates. By May, stocks were hitting new highs, but the market didn’t stay there for long. Worries about slowing Chinese growth in the summer gave reason for the Fed to pause and for traders to fret, sending U.S. indexes into a correction, although the last few months they’ve marked a return to their initial starting point. Better luck in 2016? (Source: Seeking Alpha)
7:00 MBA Mortgage Applications
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
1:00 PM Results of $29B, 7-Year Note Auction
3:00 PM Farm Prices
Santa Claus rally which began Monday continued its gains yesterday to reach 3 Day Cycle Target (2070.50) outlined in prior DTS Briefing Report 12.29.15. Overnight trade sees little advancement in price with increased potential for pullback during today’s trading session.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL/DOWN…Expectation will be for some back n fill price action since this cycle’s target objective has been achieved.
Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.75; Possible HOD = 2082.75 CD2 Penetration Level; Possible LOD = 2055.00 3D CPZ.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2016 (H) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 2: Failure to convert PH (2074.50) suggests some back n fill price action is required to absorb recent cycle gains. Downside price levels to be mindful of on pullback are: 2065.00, 2063.00, 2061.00. Weakness below targets 2056.50 – 2053.50 3D CPZ.
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