Trade Strategy 11.20.15

Markets

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)

Today’s Economic Calendar

11:00 Kansas City Fed Mfg Survey

PTG Trading

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.

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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 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!

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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