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)
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
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.
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!
“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