Futures at 6:20, Dow +1.1%. S&P +1.2%. Nasdaq +1.6%. Crude +1.4% to $29.86. Gold -2.1% to $1213.60.
Ten-year Treasury Yield +2 bps to 1.76%
8:30 Empire State Mfg Survey
9:00 Fed’s Harker speech
10:00 NAHB Housing Market Index
10:30 Fed’s Kashkari speech
4:00 PM Treasury International Capital
7:30 PM Fed’s Rosengren: Economic Outlook
Futures Markets traded on a shortened Session Monday for US Holiday and Bulls took full advantage of low liquidity environment pushing price higher to 1892 handle…90 handles from low swing.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…With shortened trade session yesterday bullish swing sentiment is intact as long as price stays above 1865.00 Cycle Day 1 Low. Three-Day Cycle Rally Target remains at 1904.50.
Range Projections and Key Levels:
HOD Range Projection = 1916.58; LOD Range Projection = 1853.92; CD2 Maximum Violation Level = 1840.00; CD2 Maximum Penetration Level = 1899.17; Cycle Day 1 Low = 1865.00; 3 Day Central Pivot = 1851.00; 3 Day Cycle Target = 1904.50; 10 Day Average True Range = 38.83.
**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 can hold above 1880.00 Central Pivot, and Clear and Convert PH (1890.00), THEN initial upside objective is 1899.17, followed by 1904.50. Above this level measures 1916.58.
Scenario 2: Failure to convert PH (1890.00), followed by violation and conversion of 1880.00 (CP), then deeper downside trade to test 1865.00 Cycle Day 1 Low. Break below this level expands downward targeting 1853.92, then 1851.00 – 1848.00 3 Day Central Pivot 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