Trade Strategy 12.12.16

Markets

Oil prices have jumped 5% to over $54/bbl after OPEC and non-OPEC producers signed their first deal to cut output since 2001. Led by Russia, non-OPEC nations agreed to reduce production by 558K barrels per day, falling just short of the 600K target envisioned by OPEC. But following the meeting in Vienna, the Saudi Energy minister Khalid Al-Falih said everyone is committed to making sure the levels are enforced.

In Asia, Japan +0.9%. Hong Kong -1.4%. China -2.5%. India -0.9%.
In Europe, at midday, London -0.3%. Paris flat. Frankfurt -0.2%.
Futures at 6:20, Dow -0.1%. S&P -0.2%. Nasdaq -0.5%. Crude +5% to $54.02. Gold -0.3% to $1158.10.
Ten-year Treasury Yield +5 bps to 2.51%.

Economic Calendar

1:00 PM Results of $24B, 3-Year Note Auction
1:00 PM Results of $20B, 10-Year Note Auction
2:00 PM Treasury Budget

PTG Trading

We’ll get higher and higher straight up we’ll climb
We’ll get higher and higher leave it all behind
Run, run, run, away
Like a train runnin off the track

“Dreams” by Van Halen

All that came to mind this morning writing today’s briefing was Van Halen song: “Dreams” which places the recent rally in somewhat of perspective.

Today is Cycle Day 2 (CD2)…Price jumped higher at start of Globex Session, but has since retreated to slightly below PH (2255.25). Bulls will need to maintain bid above this level to continue their upward momentum, otherwise potential exists for a sharp reversal. Daily Pivot is marked at 2250 handle which becomes today’s key “bull/bear” marker.

Range Projections and Key Levels

HOD  ATR Range Projection: 2265.40; LOD ATR Range Projection: 2249.10; Cycle Day 1 Low: 2239.75; 3 Day Central Pivot: 2237.50; 3 Day Cycle Target: 2265.18; 10 Day Average True Range: 15.65

**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: March 2017 (H) 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 converts PH (2255.25) to upper support, THEN a retest of overnight high 2264.75 is primary objective. Strength above this level measures 2268.99 – 2272.73 cycle range highs.

Scenario 2: Initial sign of weakness would be converting Central Pivot (2250.50) to lower resistance. IF this occurs, THEN lower target measures 2237.50 – 2234.50 3 Day Central Pivot Zone.

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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