(Source: Seeking Alpha)
8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash
10:00 Existing Home Sales
10:00 Leading Indicators
1:00 PM Baker-Hughes Rig Count
We wrote in prior DTS 1.21.16 Report : “Scenario 1: IF price can hold above 1840 SPOT, THEN initial upside targets 1850, followed by 1866 3 Day Central Pivot. Above this level rally can accelerate to 1891.00.”
Support in-fact held 1840 during cash session allowing Bulls to maintain control, producing a well needed “relief-rally” which has pushed price higher to stated target of 1891.00 in overnight trade. The current Cycle and Range Projections have been spot-on given that volatility remains elevated at 45.75 handles for 10-Day Average True Range.
Today is Cycle Day 3 (CD3)…IFFY SPILL…Residual bullish momentum may continue to carry price higher targeting 1902.50 – 1908.00 3 Day Cycle Target. Bulls are going to work at producing a solid end of week trade, so we will maintain positive bullish bias for today as long as 1866 3 Day Central Pivot holds any pullback test.
**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 clears and converts PH (1883.25), THEN initial upside objective is 1891.00 SPOT…Strength above this level targets layered levels: 1895.75; 1902.50 – 1908.00.
Scenario 2: Price is currently above PH (1883.25)…Violation and conversion back down through this level produces a swing high and increases odds of pullback down to 1866 3D CPZ Pivot. Weakness below this level targets 1846.25 lower 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!
“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