Stocks are mostly lower and government bond prices higher as U.S. equity futures ease from record levels. “We’re now on to the next shiny new object and that’s earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management. “As long as companies beat earnings estimates, investors will feel comfortable buying stocks.” But with grim Q2 results predicted by analysts, will traders continue the equity buying?
In Asia, Japan +1.4% to 16723. Hong Kong -0.6% to 21673. China -0.2% to 3037. India +0.2% to 27788.
In Europe, at midday, London -0.4%. Paris -1.2%. Frankfurt -1.2%.
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -0.5% to $45.72. Gold +0.3% to $1333.20.
Ten-year Treasury Yield -4 bps to 1.54%
(Source: Seeking Alpha)
Summertime trade has arrived, along with 90 degree temps. With ranges narrowing and volumes contracting, attention will now be on upcoming companies earning reports. Markets move from contraction and expansion phases…Past two session ranges have contracted producing dual-inside days.
Today is Cycle Day 3 (CD3)…There remains room to expand higher to vault to upper price targets, but first hurdle is to convert 2162 to new support. Violation of CD1 Low (2149.00) would be Sign of Weakness, though expectation is for continued responsive buying should any weakness develop.
Range Projections and Key Levels: Sept (U) Contract
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
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 clears and converts 2162 handle, THEN primary objective is to push higher through 2164 – 2166 STATX Zone. Beyond this zone are upper targets: 2171, 2173.50, 2179.25.
Scenario 2: Violation and conversion of CD1 Low (2149) would be first SOW targeting 2125 – 2141 lower 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.”
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