In Europe, at midday, London +0.9%. Paris +0.6%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.7%. S&P +0.7%. Nasdaq +0.6%. Crude +0.2% to $33.29. Gold -0.4% to $1112.20.
Ten-year Treasury Yield -6 bps to 1.92%
8:30 GDP Q4
8:30 International trade in goods
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Reuters/UofM Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
S&P e-mini pretty much played out as written in prior DTS Report 1.28.16. Wide range consolidation was name of game, touching our upper level at 1902.00 (Scenario 1) and holding above key 1863.50 (LOD Projection).
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…Three Day Cycle Target (1897.00) has been achieved, so as such, end of month trade activity may end up being a bit choppy as bulls and bears will continue to play “tug-o-war” battle for control.
Range Projections and Key Levels:
HOD Range Projection = 1916.75; CD2 Maximum Penetration Level = 1910.75; LOD Range Projection = 1863.00; Cycle Day 1 Low = 1865.75; CD2 Violation Level = 1854.25
**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 (1902.50), THEN upside range expansion targets 1906.25 – 1910.75, followed by 1916.75.
Scenario 2: Violation of 1872.00 opens door to retest Cycle Day 1 Low (1865.75), followed by lower expansion down to 1860.75 – 1854.25.
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