In Europe, at midday, London +1.4%. Paris +0.5%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.8% to $32.55. Gold +0.5% to $1147.10.
Ten-year Treasury Yield +2 bps to 1.9%
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
8:30 Gallup Good Jobs Rate
9:45 Bloomberg Consumer Comfort Index
10:00 Factory Orders
10:30 EIA Natural Gas Inventory
4:30 Money Supply
4:30 Fed Balance Sheet
So you wanted to become a futures trader? Are you having fun yet? Yesterday’s range was 47.25 handles which is above the 10 Day Average True Range of 38.47. It’s not so much the range as we have adjusted to wide swings, but the intra-day sentiment shifts…Can we even use the word “sentiment” when discussing algorithmic robots? Do the robots have any “feeling”? Probably not, but they have surely created lots of anxiety with many carbon-based life form traders.
Note: Correlation between S&P and Crude Oil (ES:CL) is currently 0.67 which is actually down from 0.97 a week ago…It’s funny that investors worldwide are increasing their chatter about this correlation, which has existed for some time…By the time they finally figure out the reason it won’t matter…But humans have a strong desire for reasons since we are supposed to be “rational beings” and reasons matter…Traders only have a strong desire to make money…reasons do not matter.
Today is Cycle day 3 (CD3)…NORMAL SPILL UP…There still remains room to upside to reach 1926.00, which is 3 Day Cycle Target. Yesterday’s reversal was certainly dramatic lead by strong Crude Oil rally…Battle for total dominance will continue within a very wide trading range marked by 1865.00 – 1940.25
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 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 holds above 1908.00 and subsequently clear and convert 1922.50, THEN upside expansion targets 1926.00, 1932.50 followed by 1944.50.
Scenario 2: Violation and conversion of 1908.00 opens door to corrective pullback targeting 1901.25, followed by 1895.00 down to 1888.75.
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