Trade Strategy 2.2.16

Posted on by February 2, 2016
Markets
Chinese shares climbed higher today after the country’s central bank injected more liquidity into the financial system and guided the renminbi to its highest fix in almost a month. The PBOC added 100B yuan ($15.2B) in short-term loans to money markets, in a move to stave off potential liquidity squeezes ahead of the week-long Lunar New Year holiday that starts Feb. 7. Shanghai Composite +2.3%.
In Asia, Japan -0.6% to 17751. Hong Kong -0.8% to 19447. China +2.3% to 2750. India -1.2% to 24539.
In Europe, at midday, London -1.5%. Paris -1.6%. Frankfurt -0.8%.
Futures at 6:20, Dow -0.7%. S&P -0.7%. Nasdaq -0.8%. Crude -2.8% to $30.74. Gold -0.3% to $1124.40.
Ten-year Treasury Yield -2 bps to 1.93%
(Source: Seeking Alpha)

Today’s Economic Calendar

Auto sales
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
1:00 PM Fed’s George: Monetary policy and Economic Policy

PTG Trading

S&P e-mini (ES) backed n filled holding above 1913.50 Key Pivot outlined in prior DTS Report 2.1.16. Afternoon strength pushed price higher reaching 1938 target which represented 75% of 10 Day Average True Range.

Today begins a new Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Average Cycle Decline Target = 1900.50 Resistance is marked at 1932.50 SPOT. Support 1913.50 SPOT.

Range Projections and Key Levels:

HOD Range Projection = 1949.75; LOD Range Projection = 1888.75; Daily Pivot = 1927.00; Three Day Central Pivot Zone = 1911.00 – 1905.00.

**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 continues to hold above 1913.50, THEN initial upside target measure 1927.00…Above this level measure 1932.50.

Scenario 2: Today is CD1 and as such the normal spill is down…Initial resistance is marked at 1927.00 CP…IF price breaks down through 1913.50 THEN lower targets are 1908.00 – 1905.00. Below this zone measures 1900.50 Cycle Range Decline Target.

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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