Trade Strategy 12.28.16

Markets

It might be time to get on the party hats. Dow futures are up 0.2% after the blue-chip index yesterday came within 20 points of hitting 20,000. Its ongoing flirtation with the key level has become the talk of Wall Street, as only three more days remain for 2016 to claim the milestone – otherwise, assuming it comes to pass, it will be officially credited to 2017. At that level, the Dow’s year-to-date gain would total almost 15%.

In Asia, Japan flat. Hong Kong +0.8%. China -0.4%. India flat.
In Europe, at midday, London +0.4%. Paris flat. Frankfurt flat.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +0.5% to $54.18. Gold flat at $1139.10.
Ten-year Treasury Yield flat at 2.56%

(Source: Seeking Alpha)

Economic Calendar 

8:55 Redbook Chain Store Sales
10:00 Pending Home Sales
11:30 Results of $13B, 2-Year FRN Auction
1:00 PM Results of $34B, 5-Year Note Auction

PTG Trading

Early strength in AM Session reaching upper STATX Zone target outlined in prior DTS 12.27.16 Briefing lead to a slow drift lower during PM Session closing marginally positive for the day. Volume and Range continue to be anemic.

Today is Cycle Day 1 (CD1)…Markets are once again trying to lean upside pre-cash open in an attempt to clear the Dow 20000 level by year end. 

Range Projections and Key Levels

HOD  ATR Range Projection: 2274.60; LOD ATR Range Projection: 2253.40; Cycle Day 1 Low: 2251.00; 3 Day Central Pivot: 2259.00; 3 Day Cycle Target: 2275.73; 10 Day Average True Range: 13.60

**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: Bulls goal is to continue to keep firm bid and to reach 2275 – 2280 zone.

Scenario 2: Bears have been ineffective in forcing any meaningful decline..They would prefer price below 2250 support to force some selling for to cover short positions.

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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