“Whatever it takes, whatever we must, without undue delay, no limits,” are some of the words ECB President Mario Draghi has used regarding more stimulus over the last several months, but today we’ll see if he’s ready to put the money where his mouth is. Expectations the central bank will announce additional easing measures are running high, and Draghi has an arsenal of possible support measures at his disposal. Among them: Pushing the deposit rate further into negative territory, an expansion of the bank’s trillion-euro bond-buying program, and a new or revised low-interest, long-term loan program.
In Asia, Japan +1.3% to 16852. Hong Kong -0.1% to 19984. China -2% to 2805. India -0.7% to 24623.
In Europe, at midday, London -0.2%. Paris +0.2%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.2%. S&P +0.3%. Nasdaq +0.2%. Crude -0.5% to $38.10. Gold -0.6% to $1249.40.
Ten-year Treasury Yield -2 bps to 1.87%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM Results of $12B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Trading was confined within a relatively narrow range in Wednesday’s Session as traders/investors await ECB /Draghi’s stimulus decision. Key Demand Zone remains 1976 – 1978 and Key Supply Zone 1993 – 1996. Conversion of either zone should determine next directional swing.
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Though the norm is for a decline, we will defer to news for price reaction…Range has been compressing as ATR (10) is now 23.67…
Range Projections and Key Levels:
HOD Range Projection = 2000.92; LOD Range Projection = 1966.33; CD1 Maximum Penetration Level = 2003.00; CD1 Maximum Violation Level = 1966.26; Cycle Day 1 Low = 1984.50; 3 Day Central Pivot = 1980.50; 3 Day Cycle Target = 2016.39; 10 Day Average True Range = 26.33.
**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 clears and converts 1993, THEN upside targets 1998 – 2003.75 STAT X Zone.
Scenario 2: IF Price violates and converts 1978, THEN trap door opens targeting 1968 – 66.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