Trade Strategy 11.17.16

Markets

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)

Economic Calendar

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

PTG Trading

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

HOD Range Projection: 2196.00; LOD Range Projection: 2154.25; Cycle Day 1 Low: 2158.50; 3 Day Central Pivot: 2170.00; 3 Day Cycle Target: 2186.00; 10 Day Average True Range: 24.05

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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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!

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


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