The Shanghai Composite soared 3.2% today as investors weighed the likelihood of further stimulus from Beijing following data that China’s economy grew at its slowest pace in a quarter of a century. Q4 gross domestic product eased to 6.8% from a year earlier, while full-year growth slipped to 6.9%, adding to the troubling economic picture that’s unsettling traders around the world. Additional December data that missed expectations: Industrial output +5.9%; Retail sales +11.1%; Fixed asset investment growth +10%.
In Asia, Japan +0.6% to 17048. Hong Kong +2.1% to 19636. China +3.2% to 3008. India +1.2% to 24480.
In Europe, at midday, London +2,1%. Paris +2.5%. Frankfurt +2.2%.
Futures at 6:20, Dow +1.6%. S&P +1.6%. Nasdaq +1.6%. Crude +1.7% to $29.91. Gold -0.4% to $1086.90.
Ten-year Treasury Yield +5 bps to 2.08%
(Source: Seeking Alpha)
10:00 NAHB Housing Market Index
4:00 PM Treasury International Capital
(Source: Seeking Alpha)
Equity markets were closed and futures traded in a relative quiet range, giving traders and investors a well needed “time-out” to gather their composure, following a wild two-week trading period.
Price has rallied in overnight trade to reach range projection of 1902.00 and 3 Day Cycle Rally Target. Average True Range (3) has compressed back to 42.25, still elevated, but down from 61.75 peak.
Today is Cycle Day 3 (CD3)…NORMAL SPILL UP…Cycle targets have already been achieved in overnight trade, though further upside potential remains should Bulls keep control in cash session. Levels to be mindful of are: 1908.00 SPOT; 1912.75; 1923.25; 1927.50; 1893.00 – 1889.50 zone; 1886.50 and 1884.00 SPOTs.
**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 2: Violation and conversion below 1886.50 shifts current bullish dynamics back to bear camp with lower targets measuring 1875.00 – 1873.50; 1868.75 – 1865.50 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