World shares extended losses today after consumer inflation in China eased more than expected, adding to the list of concerns surrounding the world’s second-largest economy. The country’s consumer price index climbed 1.6% in September from a year earlier, against forecasts of a 1.8% rise and following August’s 2% gain. Meanwhile, China’s producer price index fell 5.9%, clocking its 43rd straight month of decline and recording its biggest drop since the depths of the global financial crisis.
7:00 MBA Mortgage Applications
8:30 Producer Price Index
8:30 Retail Sales
10:00 Business Inventories
2:00 PM Fed’s Beige Book
An opening gap down attracted strong responsive buyers following quiet holiday trade, propelling price upwards to extreme overbought levels (2014), only to reverse hard down closing at or near lows of session. This reversal places the current uptrend on notice and bulls on the defensive…Price will need to recapture and hold 2008 SPOT to keep upside expansion intact.
Today is Cycle Day 2 (CD2)…Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50 Possible HOD = 2011.25; Possible LOD = 1982.00
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
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 clears and converts PL (1993.25), THEN initial upside targets 1999.50 Central Pivot…Above this level measures 2005.25…Key SPOT to convert is 2008.00.
Scenario 2: Failure to convert PL (1993.25) and subsequent violation of ONL (1989.25) places bulls on the defensive…Downside levels to be mindful of are: 1991.00 (YELL), 1988.00, 1985.00, 1982 CD2 Violation 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!
“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