Trade Strategy 10.27.16

Markets 

The British economy grew by a much better-than-expected 0.5% in the third quarter, the first time impacts from the Brexit vote could fully be analyzed. The dominant services industry, which accounts for almost 80% of the economy, was once again the driving force, expanding by 0.8%. Initial predictions of doom post-Brexit have yet to materialize – with the exception of the crashing pound – and economic data has broadly held up well.

In Asia, Japan -0.3% to 17336. Hong Kong -0.8% to 23132. China -0.1% to 3112. India +0.3% to 27915.
In Europe, at midday, London -0.1%. Paris -0.3%. Frankfurt -0.1%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude +0.5% to $49.44. Gold +0.4% to $1271.
Ten-year Treasury Yield +4 bps to 1.83%

(Source: Seeking Alpha)

Economic Calendar

8:30 Durable Goods
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

PTG Trading

Bulls defended 2128 key support in prior session early forcing quick rally with positive EIA report in the oil patch. Retest support later in session found continued buying interest.

Today is Cycle Day 3 (CD3)…Expectation is for price rally today above the Cycle Day 1 Low (2135.25) to notch a Positive 3 Day Rally. Key support zone is now marked 2128 – 2130.

Range Projections and Key Levels

HOD Range Projection: 2143.50; LOD Range Projection: 2123.75; Cycle Day 1 Low: 2135.25; 3 Day Central Pivot: 2138.75; 3 Day Cycle Target: 2157.00; 10 Day Average True Range: 15.18

**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: 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 clears and converts PH (2140.00), THEN upside measure 2143.50 – 2147.00 HOD ATR Range Projection.

Scenario 2: IF price violates and converts 2135.25, THEN downside measures 2130 – 28 support zone. Violation of this zone opens door to 2125.50 – 2123.50 STATX 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


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