In Europe, at midday, London flat. Paris flat. Frankfurt +0.1%.
Futures at 6:20, Dow -0.3%. S&P -0.2%. Nasdaq -0.3%. Crude -3.1% to $31.19. Gold +0.8% to $1104.80.
Ten-year Treasury Yield -2 bps 2.02%
(Source: Seeking Alpha)
10:30 Dallas Fed Manufacturing Survey
This past 3 Day Cycle was capped off nicely as price reached 1902.50; HOD Range Projection outlined in Prior DTS Report 1.22.16 Overnight trade has seen no further upside progression as price is trading within a relatively narrow 16 handle range. Bulls will need to convert 1902.50 for further upside expansion of last week’s recovery performance.
Today begins new Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Current 10 Day Average True Range ATR (10) stands at 45.58…Volatility remains elevated, so stay vigilant and disciplined with trade risk. Residual bullish momentum may take price higher to reach 1908.00 SPOT 3 Day Cycle Target before the next decline begins.
HOD Range Projection = 1921.50; CD1 Maximum Penetration Level = 1912.75; LOD Range Projection = 1858.50; Average Cycle Range Decline = 1865.50; 3D Central Pivot Zone = 1867.50 – 1860.00.
**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( 1902.25), THEN upside objectives are: 1908.00 SPOT, 1912.75; 1921.50.
Scenario 2: Failure to convert PH (1902.25) and subsequent violation of 1886.00 SPOT opens door to begin this cycle’s decline, initially targeting 1879.00 followed by 1870.00; 1865.50; 1858.50.
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