Trade Strategy 2.18.16

Markets
U.S. futures are marching higher after Wall Street logged its first three-day rally of 2016. Some stronger-than-expected industrial production data reassured investors about the strength of the U.S. economy, while crude prices soared after Iran endorsed an oil output cap. The Fed’s January meeting minutes also reflected a dovish tone, boosting equities sentiment on a likely delay to upcoming rate hikes.
In Asia, Japan +2.3% to 16197. Hong Kong +2.3% to 19363. China -0.2% to 2862. India +1.1% to 23649.
In Europe, at midday, London -0.2%. Paris +1%. Frankfurt +1.7%.
Futures at 6:20, Dow +0.5%. S&P +0.5%. Nasdaq +0.6%. Crude +2.6% to $31.46. Gold -0.6% to $1204.
Ten-year Treasury Yield flat at 1.81%
(Source: Seeking Alpha)
Today’s Economic Calendar

8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

PTG Trading

With renewed bullish momentum highlighted in prior DTS Report 2.17.16 price exceeded average range projections to reach 1928.00 expansion target. Bulls have decisively shifted price momentum back to their control. Price is a full 130 handles higher from swing low.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Potential exists now for corrective pullback/decline to consolidate recent price gains. We will be on guard for signs of price weakness if buyers cannot continue to press higher.

Range Projections and Key Levels:

HOD Range Projection = 1952.42; LOD Range Projection = 1897.82; CD1 Maximum Penetration Level = 1945.50; CD1 Maximum Violation Level = 1854.10; Cycle Day 1 Low = 1865.00; 3 Day Central Pivot = 1892.25; 3 Day Cycle Target = 1953.50; 10 Day Average True Range = 35.67.

**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 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 holds above 1912.50 and converts PH (1927.25), THEN residual bullish momentum targets 1935.75 – 1941.25 STATX Zone. Strength above this zone measures 1945.50, then 1952.42.

Scenario 2: Failure to convert PH (1927.25) opens door for a corrective pullback to find renewed buyers. Initial downside objective is 1912.50 Central Pivot. Violation and conversion of this level targets 1904.75 followed by 1897.82 – 1892.25 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!

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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