In Europe, at midday, London -2.3%. Paris -3.4%. Frankfurt -2.4%.
Futures at 6:20, Dow -1.8%. S&P -1.8%. Nasdaq -2%. Crude -3.6% to $26.46. Gold +2.7% to $1226.80.
Ten-year Treasury Yield -8 bps to 1.62%
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Yellen delivers semi-annual monetary policy testimony
10:30 EIA Natural Gas Inventory
1:00 PM Results of $15B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Yesterday’s early rally which came within 3 tics of projected HOD (1878.50) faded, consolidated midday and by settlement sold-off to close very weak. In overnight trade selling has continued unabated to push lower reaching 1808.55, which is today’s LOD Range Projection.
Today is Cycle Day 2 (CD2)…NEUTRAL DOWN…With Crude Oil at fresh contract lows (26.22) and equities not being able to hold bid, more long-liquidation and margin selling could be on tap for today. Until there is evidence of stabilization, any and all rallies are considered selling opportunities, as “risk-off” is name of game. Gold and Bonds have seen appreciation as they are considered “safe-haven” places for investors monies.
Range Projections and Key Levels:
HOD Range Projection = 1847.45; LOD Range Projection = 1808.55; CD2 Maximum Violation Level = 1814.75; CD1 Maximum Penetration Level = 1888.50; Cycle Day 1 Low = 1838.50; 3 Day Central Pivot = 1850.25; 3 Day Cycle Target = 1904.50; 10 Day Average True Range = 38.70.
**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: Price is currently near LOD Range Projection of 1808.55…Price will need to hold at or above this level, then clear and convert 1818.50 to have any chance of rallying to 1st objective of 1838.50 (CD1 Low). Above this level targets 1847.45 – 1850.25 zone.
Scenario 2: Failure to rally during cash session above 1818.50 keeps pressure for additional margin selling..Price has already reached 1808.55 LOD Range Projection…Break further below this level targets 1802.75 – 1798.00, with deep STATX Xtreme measuring 1789.25
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