World shares are taking another beating amid further turmoil in the Chinese stock market, where equities were suspended for the second time this week after tumbling more than 7% in the first half hour of trade. What’s triggering the panic selling? The continued slide in the renminbi is weighing heavily on investor sentiment, as it suggests all the government’s stimulus efforts aren’t working. Why? A currency devaluation is seen as a last-ditch effort to boost exports, and the fear is China won’t be able to maintain its growth targets. Today’s yuan midpoint was set at 6.5646 per dollar, 0.51% weaker than the previous rate, marking the biggest fall between daily fixings since the currency’s major devaluation in mid-August.
In Asia, Japan -2.3% to 17767. Hong Kong -3.1% to 20333. China -7% to 3125. India -2.2% to 24852.
In Europe, at midday, London -2.7%. Paris -2.8%. Frankfurt -3.5%.
Futures at 6:20, Dow -2.2%. S&P -2.2%. Nasdaq -2.9%. Crude -2.6% to $33.09. Gold +0.6% to $1098.10.
Ten-year Treasury Yield -3 bps to 2.14%
(Source: Seeking Alpha)
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Gallup Good Jobs
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
2:15 PM Fed’s Evans: U.S. Economy
4:30 Money Supply
4:30 Fed Balance Sheet
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…This cycle’s decline began or rather is a continuation of prior cycle’s decline…We will diverge from normal cycle numbers as recent price ranges are aberrant comparisons.
Current 3 Day ATR (average true range) is 38.92 and represents 72% higher than max normal value of 22.50 observed on Cycle Day 1. As such we will use this number to adjust for increased volatility.
Price has extended lower in overnight trader into STATX Zone between 1935.75 – 1921.00. Projected Low of Day (LOD) is marked at 1928.50 which represents 162% of 3D ATR. Possible High of Day (HOD) is marked at 1988.00.
**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 can stabilize at or above 1035.00 SPOT, THEN initial upside objective is to recapture 1953.50 SPOT. Strength above this level measures 1963.75 – 1969.00 STATX Zone.
Scenario 2: IF current downswing continues with violation of 1935.00 SPOT, THEN lower objectives measures 1928.50 down to 1921.00 Extreme Low.
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