Markets
Taking cues from the U.S. election and post-Brexit trading, a “Renzi resignation rally” is underway across the globe after denting equities earlier in the session. With virtually all the ballots counted, 59.6% of Italians voted to block the Prime Minister’s constitutional reform plans in a closely-watched referendum. The euro has come off 20-month lows, trading down only 0.2% at $1.0639, while the yield on 10-year Italian government bonds rose 11 basis points to 2.02%.
In Asia, Japan -0.8%. Hong Kong -0.3%. China -1.2%. India +0.5%.
In Europe, at midday, London +0.7%. Paris +1.1%. Frankfurt +1.6%.
Futures at 6:20, Dow +0.5%. S&P +0.5%. Nasdaq +0.6%. Crude +1% to $52.17. Gold -0.8% to $1169.10.
Ten-year Treasury Yield +2 bps to 2.41%
(Source: Seeking Alpha)
Economic Calendar
8:30 Gallup US Consumer Spending Measure
8:30 Fed’s Dudley: Macroeconomic Outlook
9:11 Fed’s Evans speech
9:45 PMI Services Index
10:00 Labor market condition index
10:00 ISM Non-Manufacturing Index
12:30 PM TD Ameritrade IMX
2:05 PM Fed’s Bullard: U.S. Monetary and Economic Policy
PTG Trading
Today is Cycle Day 3 (CD3)…Markets are rallying pre-cash as the “proletariat-class” continues to vote-out the “elite-class”. Savvy investors realize which class actually drives economic activity, and as such voting with their investment pocketbook.
Bulls will need to keep price above 2188 – 90 zone to keep overnight rally intact. Cycle Day 3 Range target measures 2206.43, with 3 Day Cycle Targets between 2210.86 – 2212.26.
Range Projections and Key Levels
HOD ATR Range Projection: 2206.43; LOD ATR Range Projection: 2178.32; Cycle Day 1 Low: 2186.00; 3 Day Central Pivot: 2195.75; 3 Day Cycle Target: 2212.26; 10 Day Average True Range: 11.73
**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: Price has currently rallied nearly 27 handles in overnight trade nearing upper cycle range target of 2206 handle. Bulls will need to find initial support within 2194.50 – 2197 3 Day Central Pivot Zone. Upside extreme targets between 2206.50 – 2212 STATX Zone.
Scenario 2: Initial sign of weakness from overnight rally would be violation and conversion of 2195 handle to resistance. IF this occurs, THEN downside retracement of overnight rally targets 2190 – 2188 zone. Should this zone fail to hold lower targets measure 2182 – 2178.32.
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.
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