Markets
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)
Economic Calendar
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
PTG Trading
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
HOD ATR Range Projection: 2372.00; LOD ATR Range Projection: 2350.75; Cycle Day 1 Low: 2355.25; 3 Day Central Pivot: 2356.75; 3 Day Cycle Target: 2378.00; 10 Day Average True Range: 13.00
**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!
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.
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