Trade Strategy 10.26.15


IMF representatives are set to give the all-clear for China’s yuan to be included in its Special Drawing Rights basket, laying the groundwork for a favorable decision by policymakers, Bloomberg reports. As part of the process scheduled for every five years, staff members will present their recommendation to the fund’s executive board for a vote in November. China took another step toward liberalizing its financial system on Friday, after the PBOC removed the cap on deposit rates (and cut interest rates for the sixth time since last November).

Today’s Economic Calendar

10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey

PTG Trading

S&P e-mini (ES) took a well deserved break Friday as price consolidated recent gains within 2058 – 2071 price boundaries. In overnight trade price has tested the 2058 SPOT successfully, so we will mark this as KEY SUPPORT. Price will need to clear and convert 2071 handle to expand higher.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Possible HOD = 2077.50 (STATX); Possible LOD = 2036.75 (AVG DECLINE)

***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 convert s PH (2074.50), THEN initial upside targets 2077.50…Should price continue above this level expansion targets measure 2091.50.

Scenario 2: IF Price violates ONL (2057.50), THEN initial downside targets 2053.75 – 2051.00 STATX Zone. Below this zone targets 2042.00 – 2039.00 3D CPZ. Average Cycle Decline measures 2036.75

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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