Crude futures are on the rise for the first time in eight days, with U.S. oil pulling further away from the $30-level breached last session following data from the American Petroleum Institute. According to the industry group, oil inventories unexpectedly fell last week, sliding 3.9M barrels to 480M. Also on tap: The EIA publishes its weekly inventories data at 10:30 a.m. ET. Brent +2.5% to $31.63/bbl; WTI +2.4% to $31.17/bbl.
In Asia, Japan +2.9% to 17716. Hong Kong +1.1% to 19935. China -2.4% to 2950. India +0.7% to 24854.
In Europe, at midday, London +1%. Paris +1.3%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude +2.4% to $31.17. Gold -0.3% to $1081.80.
Ten-year Treasury Yield +3 bps to 2.13%
(Source: Seeking Alpha)
7:00 MBA Mortgage Applications
10:00 Atlanta Fed’s Business Inflation Expectations
10:30 EIA Petroleum Inventories
1:00 PM Results of $21B, 10-Year Note Auction
1:00 PM Fed’s Evans speech
2:00 PM Fed’s Beige Book
2:00 PM Treasury Budget
(Source: Seeking Alpha)
S&P e-mini successfully hammered out a low testing early Tuesday’s point break at 1908.50. Break above 1920 SPOT catapulted price higher into settlement snapping a multi-day losing streak. In overnight trade price has pushed higher to hit 1946.00 STATX Zone Level.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…Price has risen approximately 50 handles off low…Some consolidation and absorption of recent gains are anticipated. Volatility remains elevated with 3 Day ATR of 38.00 handles. Bulls will need to hold any sell attempt above 1920 3 Day Pivot to keep current rally intact.
**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 1: IF price holds above PH (1940.25), THEN initial upside objective is 1946 STATX Level…Strength above this level targets 1958.75 – 1960.50.
Scenario 2: Failure to convert PH (1940.25) suggests a pullback to absorb recent gains…Levels to be mindful of for renewed buy response are 1928.00 SPOT, followed by 3D CPZ 1922.50 – 1918.00.
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