China’s economy grew 6.9% in the third quarter from a year ago, beating forecasts for 6.8% growth, but decelerating to its slowest pace since the global financial crisis. The results add to doubts the country can meet its year-end GDP target of about 7%, and raises pressure on Beijing to roll out more stimulus measures following a summer stock market plunge and devaluation of the yuan. More weakness in China: Other data released today showed that factory output rose 5.7% in September, missing forecasts of a 6% rise, while fixed-asset investment climbed 10.3%, below estimates of 10.8%.
10:00 NAHB Housing Market Index
Overall quiet trade session for Friday’s Options Expiration, as price continues to hold recent gains. Bulls regained solid control as price is now back above a rising 3 Day Central Pivot Zone (2004.50 – 2008.50). It would take a definitive violation and conversion of this pattern to derail the current bullish momentum.
Today is Cycle Day 2 (CD2)…NORMAL SPILL UP…Odd of rally > 10 = 84%. Odds of rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.75; Possible HOD = 2034.75; Possible LOD = 2012.00.
***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 PH (2026.00) THEN upside initially projects 2030.50, followed by 2034.75 Average Cycle Target. Continued strength above this level measures 2040 – 2044.75 STATX Zone.
Scenario 2: Failure to convert PH (2026.00) keeps price within prior range consolidating recent gains. IF price violates and converts PL (2012.75), THEN downside projects 2008.50 – 2004.50 3D CPZ.
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