Earnings season for the first quarter is about to get underway, starting with Alcoa’s (NYSE:AA) results after today’s market close. If Wall Street forecasts are to be believed, traders are bracing for a 7.9% plunge in Q1 profits, marking the steepest decline since the Great Recession. It’s part of a broader earnings erosion gripping U.S. companies due to the dramatic drop in oil prices, currency turmoil and slow growth across the globe.
In Asia, Japan -0.4% to 15751. Hong Kong +0.4% to 20441. China +1.6% to 3034. India +1.4% to 25022.
In Europe, at midday, London flat. Paris +0.7%. Frankfurt +1.3%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude -0.6% to $39.49. Gold +0.6% to $1251.30.
Ten-year Treasury Yield +1 bps to 1.73%
(Source: Seeking Alpha)
Range Projections and Key Levels: June (M) Contract
HOD Range Projection = 2054.02; LOD Range Projection = 2030.48; CD1 Maximum Penetration Level = 2063.58; CD1 Maximum Violation Level = 2015.30; Cycle Day 1 Low = 2035.00; 3 Day Central Pivot = 2044.75; 3 Day Cycle Target = 2065.39; 10 Day Average True Range = 21.52.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
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: IF price clears and converts PH (2054.25), THEN initial upside objective is 2060 – 2062.50.
Scenario 2: Violation of ONL (2032.50) opens trap door down to 2026.50.
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