Happy Columbus Day! Traders looking to take a day off for the federal holiday will be disappointed to find out that the stock markets will remain open. While investors will have to keep their eyes on their portfolios, the majority of banks and credit unions will be closed.
The crude market is “pretty much in balance,” BP CEO Bob Dudley announced at the World Energy Conference, saying current prices were giving producers a little more breathing room. But with oil stocks still so high, the wider market sentiment may take time to change. On the cost of production per barrel, Dudley said BP was looking to re-base targets: “We said $60 next year; we are under $55 now. We can see our way to $53 next year.”
In Asia, Japan closed. Hong Kong closed. China +1.5% to 3048. India +0.1% to 28082.
In Europe, at midday, London +0.2%. Paris +0.3%. Frankfurt +0.5%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude -0.4% to $49.62. Gold +1% to $1264.20.
Ten-year Treasury Yield -2 bps to 1.72%
(Source: Seeking Alpha)
12:30 PM TD Ameritrade IMX
Today is Cycle Day 2 (CD2)…Having established this cycle’s low, the current rally which began in prior session continues in the overnight reaching 2155.50, which is Average 3 Day Cycle Rally Target. Bulls will need to continue the rally during the cash session above 2156 – 58 zone to break out of recent multi-day trading range.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (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 converts 2156 to upper support, THEN primary objective will be to take out PH (2161.50) and breakout price above recent trading range. Upside targets measure 2166.25 – 2168.50
Scenario 2: Bears will be on the defensive at the top of recent trading range 2158 – 2160 and fend off any buyers. IF successful and able to push price back into range, THEN initial objective will need to convert 2148 to lower resistance. Lower retest of CD1 Low (2138) would be objective.
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
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN