Nothing’s gonna stop us now? The Dow finished with a more than 30-point gain on Thursday, hitting its tenth record closing high in a row and matching the best streak of consecutive records since 1987. Futures are heading lower today, but that could change during the session. Hopes for tax cuts and a rollback on regulations from President Trump are helping fuel the rally, with investors also excited about big federal infrastructure spending.
In Asia, Japan -0.5%. Hong Kong -0.6%. China +0.1%. India closed.
In Europe, at midday, London -0.7%. Paris -1.4%. Frankfurt -1.4%.
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.5%. Crude -0.6% to $54.15. Gold +0.6% to $1258.50.
Ten-year Treasury Yield -2 bps to 2.37%
(Source: Seeking Alpha)
Markets produced their first lower high in prior session, offering hopeful bears a “risk-marker” from which to establish new short positions. Whether this will be short-lived or not, only time will tell…but for now it’s refreshing to see some dominant selling.
Today is Cycle Day 3 (CD3)…Failure to produce a higher high now sets up a sell condition for the market to test prior lower support pivots. There is now a build-up of sell stops below recent lows and bears are hungry to force weak longs out.
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: Bulls will need to hold 2348 – 2350 zone on any pullback and push price back above 2360 handle to keep ball control.
Scenario 2: Bears need to convert 2348 – 50 zone to lower resistance in order to force selling of weak longs. Lower levels of interest are: 2346 – 2342 handles.
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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