Trade Strategy 10.4.16

Markets

Oil prices are down in early trading after reports of increased production out of Libya and Iran cut into some of the enthusiasm over the OPEC deal from last week. The market is also anxious over tomorrow’s read on U.S. commercial crude after surprise drawdowns the last few weeks. Brent crude is down 0.59% to $50.59, while WTI crude futures are 0.90% lower at $48.37

In Asia, Japan +0.8% to 16735. Hong Kong +0.5% to 23689. China -0.01% to 9604. India +0.3% to 28339.
In Europe, at midday, London +1.6%. Paris +0.9%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude -0.90% to $48.37. Gold -0.06% to $1311.90.
Ten-year Treasury Yield Flat at 1.62%

(Source: Seeking Alpha)

Economic Calendar

8:05 Fed’s Lacker: Monetary Policy
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales

PTG Trading

Monday’s Session was quiet as expected with price trading within a relatively narrow 10 handle range. We stated in DTS Report 10.3.16: “All cycle targets have been fulfilled, so as such, expectation will be for a relatively quiet session. Unless price can clear and convert PH (2168.25) the potential for the next Cycle’s decline can begin at any time. Key Support is marked between 2150 – 2153 zone.”

Today is Cycle Day 1 (CD1)…The decline which began in prior session may continue should the power to be want price lower. Overnight trade has price trading within prior range near the 3 Day Central Pivot (2153.00), so current bias is neutral. Inner STATX Zones are: 2163 – 2165 75 (upper) and 2146.50 – 2144.25 (lower).

Range Projections and Key Levels

HOD Range Projection: 2172.75; LOD Range Projection: 2140.00; Cycle Day 1 Low: 2137.25; 3 Day Central Pivot: 2153.00; 3 Day Cycle Target: 2156.00; 10 Day Average True Range: 19.75

**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 converts 2158 to upper support, THEN primary objective is to 2164.00 prior high.

Scenario 2: IF price converts 2151 to lower resistance, THEN primary objective is to retest 2146.75 price low.

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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