Trade Strategy 2.22.16

Markets

The pound has taken a plunge amid a split in the U.K.’s ruling political party over whether Britain should leave the European Union. Over the weekend, British PM David Cameron announced a historic referendum (set for June 23) to decide whether the U.K. should remain in the bloc, after finalizing a deal with EU leaders to reset Britain’s relationship. Almost half of the bosses of the FTSE 100 agree with Cameron’s ‘stay’ campaign, but he lost the backing of London Mayor Boris Johnson, who just became the most high profile supporter of a British exit. Sterling -2% to $1.4121.

In Asia, Japan +0.9% to 16111. Hong Kong +0.9% to 19464. China +2.4% to 2927. India +0.3% to 23789.
In Europe, at midday, London +1.3%. Paris +1.7%. Frankfurt +2%.
Futures at 6:20, Dow +1.2%. S&P +1.2%. Nasdaq +1.3%. Crude +3.5% to $30.67. Gold -2.2% to $1204.20.
Ten-year Treasury Yield +3 bps to 1.78%

(Source: Seeking Alpha)

Today’s Economic Calendar

8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash

PTG Trading

Friday’s Cycle Day 2 “Lean Down” worked as planned with price finding support at 1900 Strike Price early in session. Relatively quiet trading day with range contraction. Overnight trade has price higher 30.50 handles reaching 1936.23 Cycle Day 3 Maximum Penetration Level.

Today is Cycle Day 3 (CD3)…SPILL UP…Overall trends remain in a bullish configuration. Violation and conversion of 1900 would be first sign of weakness..Upside test of 1940 is on tap for today’s trade action.

Range Projections and Key Levels:

HOD Range Projection = 1940.08; LOD Range Projection = 1906.92; CD3 Maximum Penetration Level = 1936.23; CD3 Maximum Violation Level = 1884.53; Cycle Day 1 Low = 1911.25; 3 Day Central Pivot = 1915.00; 3 Day Cycle Target = 1949.00; 10 Day Average True Range = 31.83.

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Click Here

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 (1922.75), THEN initial upside objective is 1936.23, followed by 1940.08 with 1949.00 3 Day Cycle Rally Target as max objective.

Scenario 2: Price is currently above PH (1922.75)…Move back down below this level constitutes a price reversal targeting 1917.50 – 1912.50 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

Leave a Reply