After bank earnings last week and tech earnings this week, Q1 results from major industrial players are about to take center stage. General Electric (NYSE:GE), Caterpillar (NYSE:CAT) and Honeywell (NYSE:HON) will all release results this morning, and traders are on edge to see what the sector has in store. Will the rest of earnings season be able to move the U.S. market out of the sideways drift it has traveled for most of 2016?
In Asia, Japan +1.2% to 17572. Hong Kong -0.6% to 21484. China +0.2% to 2959. India -0.2% to 25838.
In Europe, at midday, London -0.8%. Paris -0.2%. Frankfurt -0.3%.
Futures at 6:20, Dow flat. S&P +0.1%. Nasdaq -0.1%. Crude +0.2% to $43.28. Gold -0.2% to $1247.80.
Ten-year Treasury Yield flat at 1.87%
(Source: Seeking Alpha)
1:00 PM Baker-Hughes Rig Count
Today begins a new Cycle Day 1(CD1)…NORMAL SPILL DOWN…Much of the decline that occurred in prior session has approximately fulfilled the Average Decline of 22 – 24 handles targeting 2080.13 – 2076.37 Zone.
As Rich Boisvert states: “We have a dilemma…Momentum could take the markets much lower, or the rally could begin at any time.”
Range Projections and Key Levels: June (M) Contract
HOD Range Projection = 2095.40; LOD Range Projection = 2071.35; CD1 Maximum Penetration Level = 2113.54; CD1 Maximum Violation Level = 2068.68; Cycle Day 1 Low = 2084.75; 3 Day Central Pivot = 2092.50; 3 Day Cycle Target = 2076.37; 10 Day Average True Range = 17.65.
**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 can hold above PL (2082.00), THEN 1st objective is to exceed 2088.50 Central Pivot…Should this occur upside potential extends to 2092.50 – 2095.40.
Scenario 2: Decline began in prior session reaching Average Decline Levels and has since bounced back to 2088.50 Central Pivot and pullback resistance. Failure at this level and subsequent violation of PL (2082.00) opens trap door forced selling which targets 2076.37 – 2073.00 STATX Zone…LOD Range Projection (2071.35 and CD1 Max Violation Level (2068.68).
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