Traders are poised to get some fresh reads on U.S. economic growth and data ahead of the holidays at the end of the week. Today’s big statistic will be the final figure for third-quarter GDP, which is expected to fall to 1.9% from an earlier estimate of 2.1%. The downshift is most likely because of business inventory adjustments as well as fewer services purchases by consumers. Wednesday’s economic calendar includes personal income numbers, durable goods orders and the new-home sales report. (Source: Seeking Alpha)
8:30 GDP Q3
8:30 Corporate Profits
8:55 Redbook Chain Store Sales
9:00 FHFA House Price Index
10:00 Richmond Fed Mfg
10:00 Existing Home Sales
Textbook Cycle Day 2 (CD2) in prior session with expected “neutral up spill’, as price pulled back to successfully test CD1 Low (1991.00)…at which time price consolidated sideways, and by settlement had rallied to close near high of day.
Overnight trade price has pushed higher to reach 2021.75 top of 3D CPZ. Support is currently marked at 2008.00 SPOT.
Today is Cycle Day 3 (CD3)…SPILL UP…Price has pushed up just shy of Average Cycle Target (2024.25)…As long as 2008.00 holds support odds favor a continued push higher to complete this Cycle’s objectives.
Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 22.00; Possible HOD = 2028.00; Possible LOD = 2008.00.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2016 (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 holds 2008.00, THEN upside objective is 2024.25 Cycle Target, with 2028.00 CD3 Penetration Level.
Scenario 2: Violation and conversion of 2008.00 opens door for selling to retest 1996.00 – 1998.00 STATX 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!
“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