Trade Strategy 8.22.16

Markets

European shares and U.S. stock futures were lower at the time of writing following a broad drop in Asia overnight. A 0.3% decline in the euro versus the dollar amid speculation about when the Fed will raise interest rates had apparently boosted exporters earlier in Europe. Vice-Chairman Stanley Fischer did nothing to dispel the feeling in a speech yesterday that the Fed will increase rates sooner rather than later as he gave an upbeat assessment about the economy.

In Asia, Japan +0.3% to 16598. Hong Kong +0.3% to 22998. China -0.5% to 9815. India -0.3% to 27986.
In Europe, at midday, at midday, London -0.5%. Paris -0.2%. Frankfurt-0.3%.
Futures at 7:10, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude -2.8% to $47.73. Gold -0.5% to $1339.95.
Ten-year Treasury Yield flat at 1.58%

(Source: Seeking Alpha)

Economic Calendar

No Events

PTG Trading

Early Session weakness recovered as options expiration kept price contained as it has been all month. Not much has really changed, so expectation remains for quiet trade at least for next two-weeks. You might want to check out the Seasonality Tool at StockCharts.com to give you a perspective of how trading activity is distributed monthly.

Today is Cycle Day 3 (CD3)…Price still need to clear and convert 2186 handle to upper support to generate higher prices…2168 – 66 zone remains key support…Expectation for direction to day is a coin-flip until there is a definitive breakout.

We washed the deck last week…This week is the white picket fence…

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2186.25; LOD Range Projection: 2174.00; Cycle Day 1 Low: 2176.25; 3 Day Central Pivot: 2179.00; 3 Day Cycle Target: 2197.00; 10 Day Average True Range: 10.63

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: September (U) 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 converts 2186 to upper support, THEN upside is open to 2192.50 – 2197 zone.

Scenario 2: Violation and conversion of CD1 Low (2176.25) to lower resistance would be initial sigh of weakness…Lower levels measure a potential retest of 2165 pivot.

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. 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


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