U.K. Prime Minister Theresa May said she’s not worried about the pound’s recent fall to a 31-year low against the dollar, although the prospect of a hard Brexit is spooking investors and sent sterling down to $1.2685 overnight. The euro has meanwhile strengthened against the dollar on reports that the ECB is considering tapering its QE program, but the central bank shot down the rumor, which suggested it could wind back its bond buying by around €10B a month.
In Asia, Japan +0.5% to 16819. Hong Kong +0.4% to 23788. China closed. India -0.4% to 28220.
In Europe, at midday, London +0.6%. Paris +0.7%. Frankfurt +0.7%.
Futures at 6:20, Dow -0.1%. S&P flat. Nasdaq flat. Crude +1.8% to $49.58. Gold +0.5% to $1275.50.
Ten-year Treasury Yield +1 bps to 1.7%
(Source: Seeking Alpha)
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Gallup U.S. Job Creation Index
8:30 International Trade
9:45 PMI Services Index
10:00 Factory Orders
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
5:00 PM Fed’s Lacker: “Does Federal Reserve Governance Need Reform?”
Prior Session was text book Cycle Day 1 as selling, which began on Cycle Day 3 continued reaching the projected Average Cycle Decline (2137.75)…Marking KEY CYCLE SUPPORT.
Today is Cycle Day 2 (CD2)…Expectation is for price to rebound (rally) off the prior low targeting 2151 – 2153 zone.
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 holds above 2142 higher low support marker, THEN primary objective for bulls is to recapture 2151 – 2153 zone. Cycle Target measures 2154.00.
Scenario 2: Violation and conversion of 2142 SPOT opens door to retest PL (2136) for security. Failure of test would create additional selling with lower projections measuring 2126.50.
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
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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