Trade Strategy 4.7.16

Markets

Still digesting details from the last Federal Reserve meeting, investors are looking ahead to the European Central Bank’s own set of minutes. The account, due at 8:30 a.m. ET, will shed some light on why the ECB chose to avert deflation through the monetary policy actions it implemented in March, while potentially revealing any measures that were discarded. Ahead of the big event, ECB officials Peter Praet and Benoit Coeure spoke on monetary policy in Frankfurt, outlining their readiness to ease further should fresh risks to the economic outlook arise.

In Asia, Japan +0.2% to 15750. Hong Kong +0.3% to 20266. China -1.4% to 3008. India -0.9% to 24685.
In Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.4%. S&P -0.5%. Nasdaq -0.5%. Crude -0.1% to $37.70. Gold +1.1% to $1236.80.
Ten-year Treasury Yield -2 bps to 1.73%

(Source: Seeking Alpha)

Today’s Economic Calendar
Chain Store Sales
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
3:00 PM Consumer Credit
4:30 Money Supply
4:30 Fed Balance Sheet
5:30 PM Janet Yellen in conversation with former Fed Chairs
8:15 PM Fed’s George: Economic Outlook
PTG Trading
Price successfully tested 2035.25 (Prior Cycle Low) at which time this Cycle’s Rally began, reaching and exceeding 2059.00, projected High of Day (HOD). In overnight trade action price has given back about half of prior session gains. Price will need to stabilize with renewed buying interest near the 2048 handle to stem any potential more serious selling.
Today is Cycle Day 2 (CD2)…NORMAL NEUTRAL…Expectation today is for some back n fill two-sided trade to consolidate recent activity. It appears that a new “multi-day” trading range is forming between 2035 – 2065 handles as the 3 Day Central Pivot Zone is now in a neutral formation.

Range Projections and Key Levels: June (M) Contract

HOD Range Projection = 2066.90; LOD Range Projection = 2042.60; CD2 Maximum Penetration Level = 2072.43; CD2 Maximum Violation Level = 2022.80; Cycle Day 1 Low = 2035.00; 3 Day Central Pivot = 2052.00; 3 Day Cycle Target = 2065.66; 10 Day Average True Range = 19.40.

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Click Here

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 at or above 2048 handle, THEN odds favor a retest of 1960 SPOT…Clear and convert this level targets 2065 – 2066 zone.

Scenario 2: Violation and conversion of 2048 handle increases odds of a retest of 2042 – 2038 zone. Any violation of this zone shows signs of price weakness which targets 2035.00. Long liquidation would occur below this level opening trap door down to 2021.58.

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!

Good Trading…David

“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

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Leave a Reply