Banking on a recovery in crude prices, General Electric (NYSE:GE) is merging its oil and gas business with Baker Hughes (NYSE:BHI), creating a large, listed player, that could compete with rivals like Schlumberger (NYSE:SLB). GE will own 62.5% of the new company, which will have combined revenue of $32B, while Baker Hughes shareholders will own 37.5% and get a special one-time cash dividend of $17.50 per share after the deal closes (expected in mid-2017). GE +1%; BHI +9.1% premarket.
In Asia, Japan -0.1% to 17425. Hong Kong -0.1% to 22934. China -0.1% to 3100. India flat at 27930.
In Europe, at midday, London -0.5%. Paris -0.7%. Frankfurt -0.4%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.3%. Crude -0.5% to $48.47. Gold -0.2% to $1274.80.
Ten-year Treasury Yield flat at 1.84%
(Source: Seeking Alpha)
Prior session was Cycle Day 1 (CD1) and with the decline in place the rebound rally which we anticipated, unfolded, reaching upside “layered” targets between 2130 – 2136. Actual high of day was 2135.25. News release of FBI reopening e-mails investigation sent markets in a tailspin within seconds…Fortunately PTG Traders were not caught on wrong side of that action.
Today is Cycle Day 2 (CD2)…Markets have recovered a bit reaching 2130.00 HOD ATR Range Level. Expectation today would be for some back n fill type trade within a larger downtrend context. It would take a price shift above 2136 handle to change the current trend dynamics.
Range Projections and Key Levels
**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 hold above 2123 handle, THEN initial upside is 2130 confluence level, followed by 2135.25 – 2137.75 STATX Zone.
Scenario 2: Violation and conversion of 2123 handle to lower resistance opens door for a retest of CD1 Low (2112.50). Below this level potentially forces long liquidation targeting 2101 CD2 Maximum Violation Level.
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!
“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
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