Hope is growing for a pact to cut crude output as OPEC oil ministers voice optimism at their all-important meeting in Vienna. Despite some conflicting statements, representatives of Iran, Iraq, Saudi Arabia and the OPEC Secretary-General are assuming the group will reach a deal by this afternoon, when members spell out what they have agreed to in terms of supply levels. Oil related stocks are doing well in the session as the price of crude jumps around 6-7% to over $48 per barrel.
In Asia, Japan flat. Hong Kong +0.2%. China -1%. India +1%.
In Europe, at midday, London +0.8%. Paris +0.4%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.1%. Crude +6.6% to $48.22. Gold -0.2% to $1188.50.
Ten-year Treasury Yield +3 bps to 2.33%
(Source: Seeking Alpha)
7:00 MBA Mortgage Applications
8:00 Fed’s Kaplan speech
8:15 ADP Jobs Report
8:30 Personal Income and Outlays
9:15 Fed’s Powell speech
9:45 Chicago PMI
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
12:35 Fed’s Mester: Monetary Policy and Economic Outlook
2:00 PM Fed’s Beige Book
3:00 Farm Prices
Prior Session’s trade successfully tested CD1 Low (2198.25) as buyers stepped-in to absorb the selling. Rally did unfold but was unable to clear 2208 – 2210 key resistance.
Today is Cycle Day 3 (CD3)…Bulls continue to have the edge with an opportunity to expand price higher if they can convert 2110 to upper support. Price has been consolidating with a 10 handle zone, so potential on breakout measures 2218 – 2224.50 Cycle Targets.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (Z) 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 1: IF price clears and converts 2110 to upper support, THEN upside targets 2218 through 2224.50.
Scenario 2: Violation and conversion of 2200 opens door for downside break of range targeting 2194 – 2192, followed by 2188 – 2183 STATX Zone.
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. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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