The Swiss National Bank left its interest rates unchanged in negative territory today, declaring that it would remain active if necessary to weaken the highly-valued Swiss franc. “Despite depreciating somewhat in recent months, the franc is still significantly overvalued,” the central bank said in a statement. The SNB kept its target range for three-month Libor at between -1.25% and -0.25%, and maintained a -0.75% interest rate on sight deposits. (Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Import/Export Prices
9:45 Bloomberg Consumer Comfort Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM Results of $16B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Early rally in e-mini (ES) faded hard from 3 day Central Pivot Zone reinforcing resistance at 2068.00 handle. Price pushed lower to surpass 2040 CD3 Extreme Range Violation Level.
Today begins Contract Rollover to March (H) from December (Z)…Volumes will become split between contracts, which tends to make for choppy trade and skewed volume statistics.
New Cycle Day 1 (CD1)…NORMAL SPILL DOWN…This cycle’s decline began in prior session and has surpassed projected lower targets all in one session, which may make for confused price action along with rollover effects.
Initial Resistance is marked at 2053.00…Initial Support…2034.25
***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 2053.00 SPOT, THEN first objective targets 2059.50, followed by 2065.75.
Scenario 2: IF price fails to convert 2053 SPOT, THEN objective for Bears would be to retest PL (2034.25).
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