While it wasn’t a blowout quarter by any stretch – earnings growth is tracking about 7.5%, according to Thomson Reuters, only a below-average 1.5% improvement on the estimate at the start of Q4. But along with 5% revenue growth, the figure is nothing to sneeze at. Further policy optimism on Wall Street and among corporate management has helped boost full-year estimates for 2017 as well.
In Asia, Japan flat. Hong Kong -0.4%. China -0.3%. India +0.1%.
In Europe, at midday, London -0.1%. Paris +0.1%. Frankfurt flat.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +1.4% to $54.33. Gold +0.5% to $1239.50.
Ten-year Treasury Yield -1 bps to 2.4%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Chicago Fed National Activity Index
9:00 FHFA House Price Index
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P e-mini (ES) was unable to notch a higher high in prior session giving the bears some hope of a possible downturn but, they were also unable to produce a lower low. With price solidly trading above uptrending 3 Day Central Pivot Zone bulls remain firmly in control.
Today is Cycle Day 2 (CD2)…Prior session (CD1) only produced a shallow, less than average decline, as this “power cycle” appears unstoppable. With no clear resistance overhead upside price potential remains open to measured targets ranging form 2372 – 2380 zone. To the downside 2350 remains an open marker for the bears to kill.
Range Projections and Key Levels
**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: IF price clears and converts 2364 SPOT to upper support, THEN initial upside targets 2372 – 2374 upper STATX Zone, followed by 2378 – 2380.
Scenario 2: IF price violates and converts 2356 handle to lower resistance, this would be first sign of weakness, THEN targeting 2350 – 2346 lower STATX 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
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