The dollar ceded some ground to the euro as traders took profits on Monday, after robust U.S. employment data prompted more investors to bet on an interest rate hike in December. The U.S. nonfarm payrolls report on Friday showed a rise of 271K new jobs last month, far exceeding the 183K economists had predicted, sending the dollar to its highest level since mid-April. U.S. Dollar Index -0.1% to 98.98. Euro +0.4% to $1.0783
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
Friday’s Session Cycle Day 1 (CD1) played out as expected, NORMAL SPILL DOWN probing for new secure low. Price tested the 2077.50 YELL to the tick…We had outlined this level in Scenario 2 of DTS Report 11.06.15. “Scenario 2: IF price violates and converts 2091.50 SPOT, THEN downside projects 2084.50 – 2082.00 STATX Zone. Below this zone opens door to test 2077.50 YELL.”
Overnight trade has price backing off from high resistance 2095.50 SPOT. Key support marker to test on any pullback is 2083.00 SPOT.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL UP…Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.50; Average Cycle Target = 2111.50; Possible HOD = 2107.75; Possible LOD = 2066.25.
***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 can hold 2083.00 SPOT on pullbacks, THEN odds (84%) favor continued rally attempt that began on Friday. Initial upside targets retest of 2095.50 – 2097.00 zone. Strength above this zone and conversion of PH (2099.00) opens door to reach 2100.75 – 2103.25 STATX Zone objective.
Scenario 2: Some back n fill is anticipated on CD2…Pullbacks are anticipated to illicit a buy response at or near 2083.00 SPOT. Should this fail to materialize, then lower objective for Bears targets retest 2077.50, CD1 Low. Violation and conversion of this level targets 2066.25 CD2 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