Trade Strategy 10.08.15


Earnings season is about to get underway, starting with Alcoa’s (NYSE:AA) results after the market close which kick off corporate reports for the third quarter. Wall Street is on edge and traders are carefully watching market action to see what direction stocks will take ahead of what some expect to be a swarm of lackluster Q3 reports. U.S. Futures: Dow -0.4%. S&P -0.3%. Nasdaq -0.3%.

Today’s Economic Calendar

Chain store sales
8:30 Initial Jobless Claims
9:30 Fed’s Bullard Speech
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Fed’s Kocherlakota Speech
1:00 PM Results of $13B, 30-Year Note Auction
2:00 PM FOMC minutes
3:30 PM Fed’s Williams: Economic Outlook
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

PTG Trading

S&P emini (ES) continues to consolidate recent gains as price held with our stated range boundaries 1990 – 1967 outlined in prior Daily Trade Strategy Report 10.07.15. Earnings season kicks off, so analysts, portfolio managers and pundits will all have a chance to weigh in on market’s next directional move.

The current price trend is bullish as long as 1950 SPOT is not violated and converted. Pullbacks are now viewed as buying opportunities, as volatility has reverted back into a normalized range.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Possible HOD = 2000.00 CD1 Penetration Target; Possible LOD = 1953.25 Average Cycle Range Decline.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: December (Z) 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 continues its bullish progression above PH (1991.25), THEN expansion targets measure 1995.00 – 2000.00 STATX Zone and CD1 Penetration Level.

Scenario 2: Failure to convert PH (1991.25) suggests a pullback within the current 2 day range. Downside levels to be mindful of for buy response are: 1971.25…1969.00…1964.75 – 1961 STATX Zone.

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.”


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