Trade Strategy 5.10.16

Markets

Stocks across the globe are heading higher, helped by some solid corporate earnings, oil’s determination to top $44/bbl, and a new pledge by Japan stating it was prepared to weaken its currency. Despite the screen of green, the S&P 500 is still where it started at the beginning of the month, continuing the trend which has categorized equities for most of 2016. Is “Sell in May” still relevant, or are the flat markets here to stay?

Today’s Markets

In Asia, Japan +2.2% to 15565. Hong Kong +0.4% to 20242. China flat at 2832. India +0.3% to 25772.
In Europe, at midday, London +0.8%. Paris +1.1%. Frankfurt +1.2%.
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.6%. Crude +1% to $43.89. Gold flat at $1266.40.
Ten-year Treasury Yield flat at 1.76%

(Source: Seeking Alpha)

Today’s Economic Calendar
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:00 Wholesale Trade
1:00 PM Results of $24B, 3-Year Note Auction
PTG Trading
Price consolidated throughout the prior session as Bulls continued to absorb residual selling to shift price above the 3 Day Central Pivot. In overnight trade price rallied to reach 2068 handle, which represents multiple convergence targets. (see today’s chart).
Today is Cycle Day 1 (CD1)…Price has pushed higher to achieve Cycle Rally Target (2068) and has since reversed lower to test Prior High (2059.75). As outlined in prior DTS Briefing 5.9.16Bulls will need to convert 2060 -62 zone to upper support to get shorts nervous. Normal price action on CD1 is for an expected decline, which has begun from 2068 handle…Average Decline off high measures 2047 handle lower target.
Range Projections and Key Levels: June (M) Contract

HOD Range Projection = 2067.13; LOD Range Projection = 2050.12; CD1 Maximum Penetration Level = 2068.66; CD1 Maximum Violation Level = 2035.76; Cycle Day 1 Low = 2039.50; 3 Day Central Pivot = 2049.25; 3 Day Cycle Target = 2068.91;10 Day Average True Range = 19.13

**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: Price has rallied in overnight to reach projected target (2068) and has since pulled back to test 2058 – 60 zone. Price will need to convert this zone to upper support for additional odds to retest 2068 SPOT.

Scenario 2: Having reached Cycle Target (2068) and reversed, price will need to violate and convert 2058 – 60 zone to resistance for sign of weakness (SOW). IF this occurs, THEN lower price targets are; 2054.00 Daily Pivot, followed by 2050 – 2046 Multiple Convergence Zone (MCZ).

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