Trade Strategy 12.20.16

Markets

The dollar is climbing back towards a 14-year high after Janet Yellen flagged strength in the U.S. jobs market, while fallout from attacks in Germany, Turkey and Switzerland are putting pressure on the euro, pushing the currency back below $1.04.

Many economists have predicted parity with the greenback for years, arguing that the dollar would appreciate as the Fed embarked upon a path of monetary-policy normalization, but those forecasts didn’t look likely to pan out until recently.

In Asia, Japan +0.5%. Hong Kong -0.5%. China -0.5%. India -0.3%.
In Europe, at midday, London +0.1%. Paris +0.4%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P +0.2%. Nasdaq +0.1%. Crude +0.6% to $53.40. Gold -0.7% to $1135.10.
Ten-year Treasury Yield +2 bps to 2.56%

(Source: Seeking Alpha)

Economic Calendar 

8:55 Redbook Chain Store Sales

PTG Trading

As expected, prior session was relatively quiet with price trading “inside” the past five sessions. This “coiling” consolidation has worked off the overbought condition, setting up for an upside continuation rally to further potential new highs. As Christmas is fast approaching, trading volumes are expected to decline, as “thin-to-win” will have a greater affect on price.

Today is Cycle Day 2 (CD2)…Expectation today is for upside follow-through with potential upside targets 2273 handle, followed by 2278 – 2280 zone. Cycle Range High: 2282.97

Range Projections and Key Levels

HOD  ATR Range Projection: 2277.73; LOD ATR Range Projection: 2249.02; Cycle Day 1 Low: 2254.00; 3 Day Central Pivot: 2258.25; 3 Day Cycle Target: 2278.95; 10 Day Average True Range: 17.73

**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 clears and converts 2266 handle, THEN initial target is 2269.50, followed by test of 2272 – 2275.25 STATX Zone.

Scenario 2: IF price violates and converts 2258 handle to lower resistance, THEN downside is open to 2254, followed by 2250 – 2248 lower over/under 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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