Markets
More rate hike clues? The Federal Reserve will publish the minutes of its Jan. 31 – Feb. 1 meeting at 2 p.m. ET. Janet Yellen indicated in testimony before Congress last week that a rate increase at the central bank’s March policy meeting is in play – given signs of rising inflation and a tightening labor force – but market-implied probabilities show a 43% chance of a rate hike next month.
In Asia, Japan flat. Hong Kong +1%. China +0.2%. India +0.4%.
In Europe, at midday, London +0.1%. Paris -0.1%. Frankfurt +0.1%.
Futures at 6:20, Dow flat. S&P -0.1%. Nasdaq flat. Crude -0.4% to $54.13. Gold -0.1% to $1237.90.
Ten-year Treasury Yield -1 bps to 2.41%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
8:55 Redbook Chain Store Sales
10:00 Existing Home Sales
11:30 Results of $13B, 2-Year FRN Auction
1:00 PM Results of $34B, 5-Year Note Auction
1:00 PM Fed’s Powell: Economic Outlook and Monetary Policy
2:00 PM FOMC minutes
PTG Trading
Indexes reached their respective 3 Day Cycle Targets in prior session as this “Power Cycle” Swing has traveled 100.50 unanswered handles since February 2nd.
Today begins Cycle Day 1 (CD1)…Normal is for some magnitude decline to unfold with an Average Decline measuring 2151.44 matching up with 3 Day Central Pivot zone between 2352.75 – 2350.25.
Range Projections and Key Levels
HOD ATR Range Projection: 2368.60; LOD ATR Range Projection: 2350.40; Cycle Day 1 Low: 2322.17; 3 Day Central Pivot: 2351.50; 3 Day Cycle Target: 2362.68; 10 Day Average True Range: 13.35
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2017 (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: Bulls will need to convert 2364 “key marker” to upper support to continue the upward thrust. HOD Range Projection measures 2368.60.
Scenario 2: Failure to convert 2364 and subsequent violation and conversion of 2358 to solid resistance opens door for decline with minimum objective measuring 2351.50. Below 2348 – 2346 zone bears begins to have edge to press for lower prices with 2342 – 2240 targeted.
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