Markets
Apple’s soggy post-earnings performance, a flood of other earnings news and weaker oil prices are weighing on equities, with U.S. stock index futures swimming in the red. Of the 150 S&P companies that have reported so far, 75.3% have beaten analyst expectations, but poor corporate forecasts appear to be the negative catalyst behind the share pullback and others feel the results haven’t been good enough.
Apple -3.4% premarket after the tech giant reported its first decline in annual revenues in over a decade, but forecast a return to growth next quarter. Meanwhile, iPhone sales continued their decline, falling 5% from the previous year, although that’s an improvement from the 15% drop seen in fiscal Q3. Apple’s (NASDAQ:AAPL) cash pile also continued to swell to a record of over $237B – if that was its own public company it would be the world’s fourteenth largest.
In Asia, Japan +0.2% to 17391. Hong Kong -1% to 23325. China -0.5% to 3116. India -0.9% to 27836.
In Europe, at midday, London -0.9%. Paris -0.8%. Frankfurt -1.1%.
Futures at 6:20, Dow -0.5%. S&P -0.4%. Nasdaq -0.6%. Crude -1.5% to $49.22. Gold -0.1% to $1271.90.
Ten-year Treasury Yield +2 bps to 1.77%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
8:30 International trade in goods
9:45 PMI Services Index Flash
10:00 New Home Sales
10:30 EIA Petroleum Inventories
11:30 Results of $15B, 2-Year FRN Auction
1:00 PM Results of $34B, 5-Year Note Auction
PTG Trading
Prior Session was textbook Cycle Day 1 as decline unfolded pushing price down to 2128.75, which is the expected Average Decline Level on CD1. In overnight trade price is hovering around this level attempting to find a secure low.
Today is Cycle Day 2 (CD2)…Current momentum favors bears early as price is below CD1 Low (2135.25) trading near average cycle decline level (2128.75). Price will need to stabilize above 2123 – 25 zone to secure a low. Violation and conversion of this zone projects a push down to 2122 – 2118 STATX Zone.
Range Projections and Key Levels
HOD Range Projection: 2153.50; LOD Range Projection: 2120.50; Cycle Day 1 Low: 2135.25; 3 Day Central Pivot: 2138.75; 3 Day Cycle Target: 2153.50; 10 Day Average True Range: 14.98
**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: IF price can stabilize above 2128 handle, THEN initial upside objective is to recapture 2135.25 (CD1 Low) and convert to support. Should this occur further upside measures 2138 – 2141 zone.
Scenario 2: Violation and conversion of 2128 handle to lower resistance opens door for additional selling targeting 2125 – 2123 zone, followed by 2120.50 LOD ATR Range Projection.
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.
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