Trade Strategy 10.19.15


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%.

Today’s Economic Calendar

10:00 NAHB Housing Market Index

PTG Trading

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.

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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 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!

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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