Markets
U.S. futures are in rebound mode, led by strong gains from battered Chinese stocks, after Beijing suspended its controversial market circuit breaker and set a firmer yuan midpoint rate for the first time in nine days. Rumors are also swirling that China intervened to prop up its markets for at least the second time since Monday as state-controlled funds bought equities. Although the Shanghai Composite ended the session up 2% at 3,186, it’s still down a whopping 10% for the week.
In Asia, Japan -0.4% to 17698. Hong Kong +0.6% to 20453. China +2% to 3186. India +0.3% to 24934.
In Europe, at midday, London +0.2%. Paris -0.2%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.7%. S&P +0.8%. Nasdaq +0.9%. Crude +0.2% to $33.34. Gold -0.7% to $1099.70.
Ten-year Treasury Yield +1 bps to 2.16%
(Source: Seeking Alpha)
Today’s employment figures from the Labor Department will show how the economy fared last year as a whole and how much momentum it’s carrying into 2016 – a major factor that could influence the timing of upcoming rate hikes. U.S. employers likely maintained a fairly strong pace of hiring in December, with non-farm payrolls gains of 200K and an unemployment rate unchanged at 5%, underscoring the economy’s healthy fundamentals despite a sputtering manufacturing sector. The data will be published at 8:30 a.m. ET.
8:30 Non-farm payrolls
10:00 Wholesale Trade
11:30 Fed’s Williams: Economic Outlook
1:00 PM Baker-Hughes Rig Count
1:00 PM Fed’s Lacker: Economic Outlook
3:00 PM Consumer Credit
(Source: Seeking Alpha)
PTG Trading
Volatile intra-day swings characterized yesterday’s trade with an overall downside bias. PTG Trading Room had an excellent session staying on the correct side throughout the day, as well as nailing intra-day high and low range projections of 1969.25 and 1928.50 respectively. Here is an excerpt from prior DTS Report 1.7.16..“Scenario 2: IF current downswing continues with violation of 1935.00 SPOT, THEN lower objectives measures 1928.50 down to 1921.00 Extreme Low.”…”Projected Low of Day (LOD) is marked at 1928.50 which represents 162% of 3D ATR.”
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…NFP Report has potential to impact market activity today, so stay alert…We will continue to diverge from normal numbers as volatility remains elevated, so as such, we will outline import inflection points.
Key Support marked at PL (1928.50)…Overnight Support marked at 1942.50…Overnight Resistance marked at 1959.75. LOD Range Projection 1921.25…HOD Range Projection 1980.00. Key Daily Pivot 1951.25…3D CPZ 1980 – 1985.50.
**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 1959.75, THEN initial upside objective measures 1968.50, followed by 1980.00
Scenario 2: Violation of 1942.75 increases odds of retest of CD1 Low 1928.50. Conversion of this level projects lower targets 1921.25 followed by 1911.25 CD2 Extreme Level.
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!
Good Trading…David
“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