Donald Trump has been elected the 45th president of the United States, beating his opponent Hillary Clinton as well as a raft of pre-election polls. “Now it’s time for America to bind the wounds of division,” he said in a victory speech, calling on all Americans to come together. The GOP also kept control of both the Senate and the House, giving the party greater freedom to implement its policy platform.
It’s an historic day for the United States, but it may not be one for the markets. Global equities initially cratered on word of a Trump presidency, even triggering safety breakers on U.S. index futures, but have pared losses. Dow futures are now about 400 points lower, while the S&P and Nasdaq are down over 2%. The tone is certainly negative, but this is not a Brexit reaction.
In Asia, Japan -5.4% to 16251. Hong Kong -2.2% to 22415. China -0.6% to 3128. India -1.2% to 27252.
In Europe, at midday, London -0.7%. Paris -1.6%. Frankfurt -1.5%.
Futures at 6:20, Dow -2%. S&P -2.2%. Nasdaq -2.6%. Crude flat at $45. Gold +2.6% to $1307.10.
Ten-year Treasury Yield +7 bps to 1.93%
(Source: Seeking Alpha)
***We will be deviating from normal Cycle commentary today and have instead outlined key inner and outer range levels below.
Volatility is expected to remain elevated as investors / traders absorb the impact of the historic US Presidential Election.
Range Projections and Key Levels
Upper D-Level: 2169.50; Upper Money Box Zone: 2186.50 – 2200.00; Midpoint: 2090.25; Lower D-Level; 2011.25; Lower Money Box Zone; 1994.25 – 1980.50; Cycle Day 1 Low: 2102.75; 3 Day Central Pivot: 2113.00; 3 Day Cycle Target: 2125.00; 10 Day Average True Range: 22.10
**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: Price is trading back near Cycle Day 1 Low (2102.75) and Midpoint (2090.25) of Globex Session. Bulls will be looking for stabilization at or above this zone. Should this occur conversion of 2121.00 handle would be primary objective.
Scenario 2: Violation and conversion of Globex Midpoint (2090.25) to resistance targets 2059.00 Lower 25% Quartile Range 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!
“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.
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