Prior to the release of the PMI figures, the euro slumped to a seven-month trough at $1.0601, following Mario Draghi’s strongest hint yet that the ECB will unveil fresh stimulus at its policy meeting next week. “The ECB is prepared to deploy its full range of stimulus measures to fight low inflation,” Draghi said on Friday. The contrast with the U.S. Federal Reserve could not be more stark as it seems destined to lift rates in December for the first time in almost a decade. (Source: Seeking Alpha)
8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash
10:00 Existing Home Sales
Friday was another consolidation with relative narrow range as options expired for this cycle. Price continues to remain in solid uptrend holding above 2075.25 (CD1 Low) key marker. This week is expected remain with bullish undertones as lower volumes and tepid investor/trader participation wanes for seasonality of Thanksgiving Holiday.
Today is Cycle Day 3 (CD3)…NEUTRAL…IFFY…There remains room to move price higher to reach 2101.00 Average Cycle Rally Target, though lower participation may create an overall lackluster trading environment.
Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 22.00; Average Cycle Rally Target = 2101.00; Possible HOD = 2102.50; Possible LOD = 2064.00.
***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 (2094.50), THEN upside targets 2098.00 – 2102.50 Zone.
Scenario 2: Failure to convert PH (2094.50) and subsequent violation and conversion of 2083.00 SPOT targets 2075.25. Conversion of this level opens door to retest 2073.50 down to 2071.00 SPOT. CD3 Average Violation Level is 2064.00.
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