7:00 MBA Mortgage Applications
10:00 Yellen delivers semi-annual monetary policy testimony
10:30 EIA Petroleum Inventories
1:00 PM Results of $23B, 10-Year Note Auction
2:00 PM Treasury Budget
Bulls strongly and successfully defended 1830.00 SPOT on retest in prior session, setting up current rally underway in overnight trade. Price has now cleared and converted prior Cycle Day 1 Low (1865.75) which is 1st objective. Next zone of importance is 1878.50 – 1883.50.
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Secure low is now in-place (1830.00)…It has setup the next rally swing currently under way…Bulls will need to keep price above 1858.00 and clear 1883.50 to turn the tide bullish.
Range Projections and Key Levels:
HOD Range Projection = 1878.50; LOD Range Projection = 1840.50; CD1 Maximum Violation Level = 1800.00; CD1 Maximum Penetration Level = 1874.50; Cycle Day 1 Low = 1865.75; 3 Day Central Pivot = 1860.75; 3 Day Cycle Target = 1904.50; 10 Day Average True Range = 40.00.
**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 clears and converts PH (1863.75), THEN odds favor range expansion targeting 1874.50, then 1878.50. Further strength targets 1883.50 SPOT.
Scenario 2: Currently price is trading above PH (1863.75)…Violation and conversion of this level opens door to pullback targeting 1858.00…Below this level pushes price down to 1850.00, then 1845 Central Pivot.
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