U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are set to resume trade talks today with Chinese Vice Premier Liu He as global equities rally in response to positive statements surrounding the discussions. The Shanghai Composite closed up 1.2%, Europe is ahead 1% at midday and the DJIA is pointing to triple-digit gains.
Crude futures are on track for a fourth consecutive positive trading session, adding 0.3% to trade at $62.70 per barrel and pushing gains for this year to 38%. Brent crude is just under $70 per barrel, with output falling for a fourth month amid continued OPEC production cuts and sanctions on Iran and Venezuela. The U.S. Energy Information Administration will release a report on crude inventories at 10:30 a.m. ET.
In Asia, Japan +1%. Hong Kong +1.2%. China +1.2%. India -0.5%.
In Europe, at midday, London +0.1%. Paris +0.6%. Frankfurt +1.2%.
Futures at 6:20, Dow +0.4%. S&P +0.5%. Nasdaq +0.6%. Crude +0.3% to $62.70. Gold +0.1% to $1297. Bitcoin +3.8% to $4951.
Ten-year Treasury Yield +4 bps to 2.52%
Source: Seeking Alpha
Today is Cycle Day 2 (CD2)…Price is extending this cycle’s rally during pre-RTH trade fulfilling CD2 Penetration Level 2882.50. Further upside measures 2886.50 – 2890.25 3 Day Rally Target Zone.
CD2 Range High = 2889.00 CD2 Range Low = 2860.00 CD2 Range Avg = 33.00
Scenario 1: IF Bulls hold bid above 2873.75, THEN initial upside potential targets 2882.50 – 2886.50 CD2 Penetration Zone.
Scenario 2: IF Bears hold offer below 2873.75, THEN initial downside objective targets 2862.25 – 2860.00 Range Pivot Zone.
Range Projections and Key Levels (ES) June 2019 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is extending this cycle’s rally during pre-RTH trade fulfilling 3 Day Rally Objective (7553.25) as well as 7570 – 7373 CD2 STATX Range Zone.
CD2 Range High = 7570.00 CD2 Range Low = 7520.00 CD2 Range Avg = 56.50
Scenario 1: IF Bulls hold bid above 7532.50, THEN initial upside potential targets 7570 – 7573 CD2 STATX Range Zone.
Scenario 2: IF Bears hold offer below 7532.50, THEN initial downside objective targets 7520 – 7510 Range Pivot Zone.
Range Projections and Key Levels (NQ) June 2019 (M) Contract
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.”
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