Markets
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)
Economic Calendar
FOMC meeting begins
Auto Sales
8:55 Redbook Chain Store Sales
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
2:00 PM Gallup US ECI
PTG Trading
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
HOD Range Projection: 2135.50; LOD Range Projection: 2115.00; Cycle Day 1 Low: 2112.50; 3 Day Central Pivot: 2126.00; 3 Day Cycle Target: 2133.50; 10 Day Average True Range: 14.43
**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!
Good Trading…David
“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.
CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN