Trade Strategy 11.23.15

Markets

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)

Today’s Economic Calendar

8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash
10:00 Existing Home Sales

PTG Trading

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.

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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 (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!

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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