Markets
Markit’s manufacturing PMI for the eurozone rose to a 30-month high of 53.3, topping estimates of 52.6. Germany’s print of 55.1 was a 33-month high, and France’s of 51.3 was the strongest in 10 months. Meanwhile in Spain, the re-election of Prime Minister Mariano Rajoy was assured after the Socialist party decided not to block him from forming a minority government. While the ending of gridlock is good news, it’s still a minority government, and likely to be weak and unstable. Europe’s Stoxx 600 is higher by 0.5%, led by Spain’s 1.3% advance.
In Asia, Japan +0.3% to 1723. Hong Kong +1.0% to 23604. China -0.3% to 9983. India +0.4% to 28201.
In Europe, at midday, London +0.1%. Paris +0.7%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.4%. S&P +0.4%. Nasdaq +0.6%. Crude +0.01% to $50.85. Gold -0.06% to $1267.00.
Ten-year Treasury Yield Flat at 1.73%
(Source: Seeking Alpha)
Economic Calendar
8:30 Chicago Fed National Activity Index
9:00 Fed’s Dudley: “Evolving Structure of the U.S. Treasury Market”
9:05 Fed’s Bullard speech
9:45 PMI Manufacturing Index Flash
1:45 PM Fed’s Powell: “Future of the settlement process for Treasury market”
PTG Trading
Early push lower for a successful test the Cycle Day 1 Low (2126.75) lead to afternoon rally achieving initial upside objective outlined in Scenario 1 of DTS Briefing 10.21.16. ” Scenario 1: IF price holds at or above CD1 Low (2126.75), THEN initial upside objective is 2134 – 2136 Pivot Zone. Above this zone is open to retest PH (2144.50).”
Today is Cycle Day 3 (CD3)…Continuation of prior session’s rally has pushed price to 3 Day Average Cycle Target 2145.50 and 2147.00 CD3 Maximum Penetration Level.
Bullish momentum may spill over into cash session extending gains, though the next decline may begin at any time since average target objectives have been achieved.
Range Projections and Key Levels
HOD Range Projection: 2152.50; LOD Range Projection: 2129.75; Cycle Day 1 Low: 2126.75; 3 Day Central Pivot: 2134.75; 3 Day Cycle Target: 2153.00; 10 Day Average True Range: 17.67
**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 has cleared prior high (2138.50) in overnight trade and has pushed up to 2147 CD3 Max Penetration Level…Average price target objectives have been achieved. Price will need to continue to power through 2147 and convert to upper support. IF this unfolds, THEN additional upside measures 2152 – 2153 ATR Range and STATX Levels.
Scenario 2: Initial Sign of Weakness (SOW) will be violation and conversion of PH (2138.50) to resistance. IF this unfolds, THEN lower levels to be mindful of for buy response are: 2135.75 – 2133.75 3 Day Central Pivot Zone.
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.”
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