U.S. futures are hugging the flatline as investors debate whether recent bullish sentiment will continue ahead of tomorrow’s U.S. jobs report. “We think the market is still overvalued at current levels and expect it to resume its decline shortly,” said Chuck Self, chief investment officer at iSectors. Other market watchers feel differently. “I’ve been encouraged by the economic numbers,” declared Gary Bradshaw, portfolio manager of Hodges Capital Management.
In Asia, Japan +1.3% to 16960. Hong Kong -0.3% to 19941. China +0.4% to 2860. India +1.5% to 24607.
In Europe, at midday, London +0.2%. Paris -0.3%. Frankfurt -0.2%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.1%. Crude +0.1% to $34.71. Gold +0.2% to $1243.70.
Ten-year Treasury Yield flat at 1.85%
(Source: Seeking Alpha)
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
8:30 Gallup Good Jobs Rate
9:45 PMI Services Index
9:45 Bloomberg Consumer Comfort Index
10:00 Factory Orders
10:00 ISM Non-Manufacturing Index
10:30 EIA Natural Gas Inventory
10:45 Fed’s Kaplan: Monetary Policy
4:30 Money Supply
4:30 Fed Balance Sheet
As expected, price did decline yesterday though shallow, as range was relatively narrow (18.50) compared to 10 Day Average True Range of 27.00 handles. We will classify this action as bullish consolidation with potential to push higher targeting 2005.50 for this Cycle.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…Overnight trade has price marginally higher touching 1987.00 STATX Zone. Price is holding above 1977.75 Central Pivot. Continued bullish action would be to hold above this level and convert 1987.00. Key support zone is marked between 1966.00- 1968.00.
Range Projections and Key Levels:
HOD Range Projection = 2005.50; LOD Range Projection = 1960.75; CD2 Maximum Penetration Level = 1996.17; CD2 Maximum Violation Level = 1941.86; Cycle Day 1 Low = 1966.25; 3 Day Central Pivot = 1958.00; 3 Day Cycle Target = 1997.71; 10 Day Average True Range = 27.00.
**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 1977.75 , THEN clears and converts 1987.00, upside objective measures 1996.71 – 1997.71, followed by 2001.25.
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