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?
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)
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
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.
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!
“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