Markets
The global stock selloff has extended into Friday trading as crude oil holds near one-month lows and investors shun riskier assets ahead of next week’s election. “One thing markets are not particularly good at pricing is political risks,” said Ashley Perrott, head of Asian fixed-income at UBS Asset Management. The S&P 500 logged its eighth straight decline yesterday, marking its longest negative stretch since October 2008.
Today’s jobs report, the last one before the U.S. presidential election, will give candidates data points that either undermine or solidify their narrative on the American recovery. October nonfarm payrolls are expected to hit 175,000, up from 156,000 in the prior month, while the unemployment rate is seen falling to 4.9% after hovering at or just below 5% for roughly a year. The figures will be released at 8:30 a.m. ET.
In Asia, Japan -1.3% to 16905. Hong Kong -0.2% to 22642. China -0.1% to 3125. India -0.6% to 27274.
In Europe, at midday, London -1.2%. Paris -0.9%. Frankfurt -0.8%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.2% to $44.58. Gold -0.1% to $1302.60.
Ten-year Treasury Yield -1 bps to 1.8%
(Source: Seeking Alpha)
Economic Calendar
8:30 Non-farm payrolls
8:30 International Trade
8:30 Fed’s Lockhart speech
1:00 PM Baker-Hughes Rig Count
4:00 PM Stanley Fischer speech
PTG Trading
Today is Cycle Day 3 (CD3)…Risk-Off selling and uncertainty surrounding the election has kept bulls sidelined. Should price trade back above CD1 Low (2087.25) this will qualify as a Positive 3 Day Cycle, albeit fairly weak cycle. Minimum conversion above 2098 – 2100 zone is needed to reverse the current decline.
Range Projections and Key Levels
HOD Range Projection: 2098.00; LOD Range Projection: 2069.50; Cycle Day 1 Low: 2087.25; 3 Day Central Pivot: 2096.50; 3 Day Cycle Target: 2108.00; 10 Day Average True Range: 17.23
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (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: Primary objective for bulls is to clear and convert CD1 Low (2087.25) to upper support. Should this occur rally potential targets 2096.50 – 2098.75 3 Day Central Pivot Zone.
Scenario 2: Failure to convert CD1 Low (2087.25) with subsequent violation and conversion of PL (2079.75) to lower resistance forces margin call selling targeting 2068.00 CD3 Max Violation Level.
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