Trade Strategy 3.24.16

Markets

U.S. stock index futures are at session lows two-and-one-half hours ahead of the open, with the S&P 500 and Nasdaq 100 down 0.5%, and DJIA down 0.4%.Shanghai’s 1.6% decline led Asia lower overnight, and Germany’s off 1.6% to lead Europe’s move into the red.Down alongside, naturally, is crude oil – off 2% to $38.98 per barrel. Gold’s off 0.6% to $1,217 per ounce. The 10-year Treasury yield is marginally lower at 1.875%.

(Source: Seeking Alpha)

Today’s Economic Calendar
PTG Trading

Prior Session was textbook Cycle Day 1 (CD1) as expected decline unfolded with gap down open which bulls could not recover. Persistent selling was the theme right into MOC Sell Imbalances. Overnight trade has price pushing lower in search of new secure cycle low.

Today is Cycle Day 2 (CD2)…Violation of CD1 Low forces continued long selling until a new secure cycle low can be found. Possible levels to be mindful of are: 2016.25, 2013.25, 2008.50. Bulls will need to stabilize and reverse price back above CD1 Low (2025.25).

Range Projections and Key Levels: June (M) Contract

HOD Range Projection = 2036.98; LOD Range Projection = 2008.52; CD2 Maximum Penetration Level = 2053.92; CD2 Maximum Violation Level = 2002.73; Cycle Day 1 Low = 2025.25; 3 Day Central Pivot = 2037.50; 3 Day Cycle Target = 2056.68; 10 Day Average True Range = 20.23.

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: June (M) 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: Price will need to find early buy response at or above 2016.25 as first line of possible support. IF this occurs, THEN reversal bounce targets CD1 Low (2025.25). Bulls will need to convert this level into upper support for higher price potential.

Scenario 2: Price has violated CD1 Low which is forcing additional selling…Downside momentum could possibly push lower to 2016.25, followed by 2013.25. Lower Range Projection measures 2008.52 and Average Cycle Decline.

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. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

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