Trade Strategy 1.14.16

Markets

Almost $3.2T has been wiped off global stocks since the start of 2016, driven by renewed jitters over China’s economy and a slump in energy prices, pushing all major U.S. indexes into correction or bear market territory. Asian markets (except for China) and European bourses are keeping up the trend today after a bruising session on Wall Street that saw the S&P 500 drop 2.5% and the Nasdaq tank 3.4%. Despite looking for a comeback earlier, U.S. futures have also dipped into the sea of red.

In Asia, Japan -2.7% to 17241. Hong Kong -0.6% to 19817. China +2% to 3008. India -0.3% to 24773.
In Europe, at midday, London -2%. Paris -3%. Frankfurt -3%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.4%. Crude +1% to $30.77. Gold +0.5% to $1092.30.
Ten-year Treasury Yield flat at 2.06%

(Source: Seeking Alpha)

Today’s Economic Calendar

8:15 Fed’s Bullard:U.S. Economy and Monetary Policy
8:30 Initial Jobless Claims
8:30 Import/Export Prices
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $13B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

(Source: Seeking Alpha)

PTG Trading

Price stalled and reversed within upper STATX Zone (1946.00 – 1941.25) which began the decline, initially viewed as a buyable pullback to consolidate recent gains. Failing to hold key 3 Day Central Pivot Zone (1922.50 – 1918.00) increased selling pressure. Final violation of 1908.50 SPOT sealed the deal for Bears as long liquidation accelerated into the final bell. All told minus 68.50 handle decline.

Today is Cycle Day 3 (CD3)…SPILL UP…Though price closed very weak, odds (83%) do favor rallying back to CD1 Low (1899.00) to recover cycle dynamics…3 Day ATR has exploded to 45.33 handles…HOD Projection = 1908.50; LOD Projection = 1852.42

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

Click Here

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 1881.00 SPOT, THEN initial upside objective is to recapture CD1 Low (1899.00). Above this level targets 1908.50 – 1914.25 3 Day Central Pivot Zone. Cycle Target 1928.00 is a tall order.

Scenario 2: IF price violates and converts 1881.00 SPOT, THEN additional selling may unfold to retest ONL (1874.50)…Further violation of this level targets 1868.25 – 1860.25 Lower STATX Zone, with 1852.42 LOD Range Projection.

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

Leave a Reply