The ECB is prepared to deploy its full range of stimulus measures to fight low inflation, ECB President Mario Draghi said on Friday, further indicating that the central bank will apply additional easy money policies at its next meeting in December. Draghi specifically referred to the ECB’s already negative deposit rate, a signal that it may be cut even further, and underscored the power of its bond purchase program, which is likely to be expanded. Euro -0.4% to $1.0688. (Source: Seeking Alpha)
11:00 Kansas City Fed Mfg Survey
Quiet consolidation of recent gains in Thursday’s Session…Cycle Day 1 fulfilled its odds (72%) of a 10- handle decline finding support within 2077.50 – 2075.50 zone, which was our stated objective in Scenario 2 of prior DTS 11.19.15.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL UP…There remains additional upside potential if Bulls want to cap off week on a strong note. Violation and conversion of CD1 Low (2075.25) would throw a wrench in the trade dynamics.
Odds of Rally > 10 = 83%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.71; Average Cycle Target = 2106.00; Possible HOD = 2106.00= Possible LOD = 2067.00.
***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 clears and converts PH (2089.25), THEN odds (83%) favor continuation upside targeting 2091.00 SPOT, 2093.00 Pivot, 2095.50 SPOT, then 2098.00 CD2 Penetration Level.
Scenario 2: Violation and conversion of PL (2075.25) targets 2072.00 – 2071.00 Zone, followed by 2067.25 – 2065.75 3D CPZ.
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