With Twitter sale news coming fast and furious, Re/code reports that Alphabet (GOOG, GOOGL) isn’t planning to make an offer, and Apple (NASDAQ:AAPL) and Disney (NYSE:DIS) are unlikely as well. That may leave the driver’s seat open for Salesforce.com (NYSE:CRM), whose stock appears to drop the more it talks about buying the messaging service. Sources told Reuters that Twitter (NYSE:TWTR) intends to finalize discussions by Oct. 27, when it announces Q3 results. TWTR -15% premarket.
In Asia, Japan +0.5% to 16899. Hong Kong +0.7% to 23952. China closed. India -0.4% to 28106.
In Europe, at midday, London -0.2%. Paris -0.3%. Frankfurt -0.2%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude -0.1% to $49.79. Gold flat at $1268.70.
Ten-year Treasury Yield -1 bps to 1.7%
(Source: Seeking Alpha)
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Gallup Good Jobs Rate
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
4:30 Money Supply
4:30 Fed Balance Sheet
Our expectation for a Cycle Day 2 rebound (rally) outlined in prior DTS Briefing 10.5.16 played out perfectly as price reached the Average Cycle Rally Target (2154.00). Most of the rally occurred in Globex Session and not much was left for Cash Session traders to profit from unless you are a Super Mario Scalper.
Today is Cycle Day 3 (CD3)…This cycle’s primary objectives have been satisfied, so as such, price could trade either direction. Bulls must convert 2156 – 58 zone to upper support for increased odds of continuation rally. Bears are seeking to convert 2146 – 48 zone to lower resistance to force selling. Price is current trading near the 2 week pivot zone between 2150 – 2155 so it’s currently a stalemate for control
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 convert 2156 – 58 zone to upper support, THEN odds favor further upside resolution targeting 2161 – 63 zone with 2167 HOD Range Projection.
Scenario 2: IF Bears convert 2146 – 48 zone to lower resistance, THEN downside objective measures 2142.50 – 2140.50 STAX Zone, with 2136 – 2135 CD3 Max Violation and LOD 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!
“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.”
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