Fed chair Janet Yellen is due to appear before the Joint Economics Committee in Washington, where she’s likely to be quizzed on how tax cuts or fiscal stimulus under Trump could affect the economic and interest rate outlook. Don’t expect a clear answer. Almost every Fed official who spoke publicly so far this week has been asked those questions, but said they’re unsure because it’s not yet obvious which policies will be pursued and enacted.
In Asia, Japan flat at 17862. Hong Kong -0.1% to 22262. China +0.1% to 3208. India -0.3% to 26227.
In Europe, at midday, London +0.4%. Paris +0.1%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.3%. Crude +0.9% to $46.53. Gold +0.5% to $1229.60.
Ten-year Treasury Yield -2 bps to 2.2%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Housing Starts
8:30 Philly Fed Business Outlook
8:30 Consumer Price Index
8:50 Fed’s Dudley Speech
9:45 Bloomberg Consumer Comfort Index
10:00 Yellen delivers testimony before the joint economic committee
10:00 E-Commerce Retail Sales
10:30 EIA Natural Gas Inventory
12:30 PM Fed’s Reserve Gov. Lael Brainard speech
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
As expected, prior session’s range was held “in-check” as price consolidated holding above 2168 – 70 newly marked support…Outlined in prior DTS Briefing 11.16.16…” The breakpoint zone of 2168 – 70 will be first test of bulls sustainability.”
Today is Cycle Day 3 (CD3)…There remains room to expand higher as overall bias favors bullish camp. Sector Rotation is the main theme for Mutual Funds, so as such, volatility in the ES e-mini has been subdued. In contrast, volatility in the NQ (naz) has been elevated as investors are re-positioning away from key index components into other sectors.
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: 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 continues to hold above 2168 – 70 zone, THEN initial upside targets 2186, followed by expansion to 2193 – 2196 zone.
Scenario 2: Sign of Weakness would be converting 2168 to resistance…IF this occurs, THEN downside rest of CD1 Low (2158.50) would likely unfold.
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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