U.S. futures and European shares are in the red after Turkish warplanes shot down a Russian military aircraft on the border with Syria. Officials said the Su-24 jet was downed after it knowingly violated Turkish airspace and its two pilots ejected before it crashed. Meanwhile, a car bomb exploded outside a hotel housing judges supervising parliamentary elections in Egypt’s North Sinai, killing at least three people and injuring 14. The region is the the main area of operations for the Egyptian affiliate of ISIS.(Source: Seeking Alpha)
8:30 GDP Q3
8:30 Corporate Profits
8:30 International trade in goods
8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:00 Richmond Fed Mfg.
11:30 Results of $13B, 2-Year FRN Auction
1:00 PM Results of $35B, 5-Year Note Auction
Markets retested their previous highs and failed to convert, then the decline began. Today begins new Cycle Day 1 (CD1)…There is room for the decline to continue.
Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Average Decline = 23.50; Possible HOD = 2086.50; Possible LOD = 2061.00.
***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: Price will need to hold 2066.00 Weekly Pivot and return back above 2077.50 YELL to stabilize price. Conversion targets 2086.00 upside.
Scenario 2: Price has declined in overnight trade to reach 2066.00 Average Cycle Decline…then bounced to 2077.50 initial resistance. IF price fails to convert above the YELL, THEN additional downside pressure is more likely the outcome retesting 2066.00.
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