Minutes from the September FOMC meeting… Many members thought raising rates would be warranted “relatively soon” if the U.S. economy continued to strengthen, but internal divisions remained over the timing of the next move. A few participants also raised concerns that waiting too long could trigger a recession, while more dovish officials wanted more evidence that inflation is firming before hiking interest rates.
In Asia, Japan -0.4% to 16774. Hong Kong -1.6% to 23031. China +0.1% to 3061. India -1.6% to 27643.
In Europe, at midday, London -0.6%. Paris -1.2%. Frankfurt -1.2%.
Futures at 6:20, Dow -0.6%. S&P -0.6%. Nasdaq -0.6%. Crude flat at $50.16. Gold +0.6% to $1260.90.
Ten-year Treasury Yield -3 bps to 1.74%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Import/Export Prices
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
12:15 PM Fed’s Harker: Economic Outlook
1:00 PM Results of $12B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
The expected range 2126 – 2138 outlined in prior DTS Briefing 10.12.16 held firm as price paused and consolidated Tuesday’s sell-off. In overnight trade price has continued to sell down below CD1 Low (2126.25) reaching 2116.00 CD2 Maximum Violation Level.
Today is Cycle Day 2 (CD2)…Price has broken below CD1 Low (2126.25) to reach CD2 Maximum Violation Level (2116.00) and has bounced slightly from extreme low (2113.50). Bulls will need to respond strongly to turn the current negative momentum and find a secure low, which it has not yet found.
*****Potential for Margin Call Selling if price cannot stabilize and recoup some of current losses.
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: Price will need to hold above 2116.00 and stabilize during cash session to get a rally initially targeting 2126 handle (PL). IF this can occur, THEN secondary target measures 2131.75 Central Pivot.
Scenario 2: Bears will look to defend any rally back to 2126 handle…Potential; is elevated for margin call selling if 2116 is re-violated and converted to lower resistance. Deep extreme targets 2110.50 – 2108.25 LOD Range Projection and STATX Zone.
*****Potential for Margin Call Selling if price cannot stabilize and recoup some of prior session’s losses.
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
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