Asian shares continued their climb higher today, sending the Shanghai Composite Index into a bull market as government support underpinned a rebound from China’s $5T stock rout. China’s main stocks are now more than 20% above their August 26 low. Thursday’s gains add to a 4% jump on Wednesday when mainland shares rallied on out-of-date comments by the PBOC, which pointed to a new Hong Kong-Shenzhen trading link. Shanghai +1.8%; Hang Seng flat; Shenzhen +0.2%; Nikkei +1%
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 PM Money Supply
4:30 PM Fed Balance Sheet
S&P e-mini took a well deserved break from it’s torrid up price action to consolidate recent gains in prior session. Sideways balanced trade is necessary to rebuild and re-energize for the next leg higher.
In overnight trade price pulled back into 3 Day Central Pivot Zone where responsive buyers stepped in and has since auctioned price higher to 2103.50 SPOT. Continued strength above this level targets a test of recent high 2110 handle.
Today is Cycle Day 3 (CD3)…NEUTRAL SPILL UP…Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 22.00; Possible HOD = 2117.75 (CD3 Penetration); Possible LOD = 2087.75 (Max Avg Range)
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (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 2103.50 SPOT, THEN odds favors a test of recent high (2110.00). Conversion of this level expands range upwards targeting 2113.00, then 2117.75 CD3 Penetration Level. Cycle Target measures 2122.50.
Scenario 2: Failure to convert 2110.00 keeps price within recent consolidation range…Violation of 2103.50 SPOT opens door to deeper decline targeting CD1 Low 2088.00 followed by 2083.50 SPOT down to 2078.25.
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