World shares are heading higher after oil prices stabilized and the Dow Jones closed above 18,000 for the first time since last July. Stocks seems to be getting a further lift from the ongoing first-quarter corporate earnings season. Analysts had forecast a pretty poor batch of results and many companies are managing to beat those expectations. The FTSE All-World equity index is up 0.7% to 268.9, its highest level since early December.
Oil prices have regained some ground as a result of an oil worker strike in Kuwait that has reduced output to 1.1M barrels per day from 2.8M. However, the gains may be short-lived. Russia’s Deputy Energy Minister Kirill Molodtsov told reporters the country is considering raising its production this year, and a level of 540M tonnes of crude is “quite realistic,” following the collapse of the Doha deal. Brent +1.6% to $43.63/bbl; WTI +1.6% to $40.41/bbl.
In Asia, Japan +3.7% to 16874. Hong Kong +1.3% to 21436. China +0.3% to 3042. India closed.
In Europe, at midday, London +0.4%. Paris +1%. Frankfurt +2.2%.
Futures at 6:20, Dow +0.4%. S&P +0.5%. Nasdaq +0.8%. Crude +1.6% to $40.41. Gold +0.8% to $1244.30.
Ten-year Treasury Yield +1 bps to 1.78%
(Source: Seeking Alpha)
8:55 Redbook Chain Store Sales
HOD Range Projection = 2106.15; LOD Range Projection = 2077.10; CD1 Maximum Penetration Level = 2098.34; CD1 Maximum Violation Level = 2052.00; Cycle Day 1 Low = 2068.50; 3 Day Central Pivot = 2076.25; 3 Day Cycle Target = 2099.36; 10 Day Average True Range = 21.40.
**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: Price has exceeded PH (2088.75) in overnight trade to reach 2098.43 CD1 Max Penetration Level. Further strength in the cash session above this level targets 2106.15 – 2108.67.
Scenario 2: Failure to exceed 2098.34 and subsequent violation below 2093.00 opens door to test CD3 High (2088.75). Violation and conversion of this level represents first SOW which would target retracement down to 2081.75 – 2076.25 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