U.S. futures are heading higher despite nervous sentiment in the market that saw stocks finish yesterday on a flat note. Many investors switched into caution mode amid new U.S. political uncertainties and ahead of a week filled with earnings reports, economic data and recent big M&A. Also on the radar: The FOMC’s two-day interest-rate setting meeting for November begins today.
In Asia, Japan +0.1% to 17442. Hong Kong +0.9% to 23147. China +0.7%to 3122. India -0.2% to 27896.
In Europe, at midday, London +0.3%. Paris +0.2%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude -0.3% to $46.71. Gold +0.9% to $1284.90.
Ten-year Treasury Yield +1 bps to 1.85%
(Source: Seeking Alpha)
Prior session trade action unfolded as outlined in DTS Briefing 10.31.16 “Expectation today would be for some back n fill type trade within a larger downtrend context.” Overnight trade is relatively quiet with narrow range. Speaking of range…10 Day ATR has contracted to 14.43 handles…This does not make for fluid intra-day trade opportunities, so keep your trade expectations realistic.
Today is Cycle Day 3 (CD3)…There remains room to reach upside cycle targets between 2133 – 2136 zone. Note: Larger downtrend remains intact, so bulls will need to show a forceful hand to get higher prices. With FOMC, NFP, Earnings and Elections traders may not be overly committal and risk-adverse this week…Certainly the tightening ranges support that viewpoint.
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 clears and converts PH (2130.50), THEN primary objective is to convert 2136 – 38 zone to solid upper support. Should this occur upside is open to 2143 – 2148.50 STATX Zone.
Scenario 2: Violation and conversion of PL (2114.75) to lower resistance opens door for deeper decline targeting 2105 – 2103 zone, with deep extreme measuring 2097 handle.
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
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