Markets
The dollar is cruising to its third straight week of gains as stock and commodity markets show signs they might be able to manage another U.S. interest rate hike. With risk appetite gradually returning following a bumpy few days, U.S. futures are edging back into the green. “The question for traders now is whether this Fed rate hike issue is a ‘risk-on’ or a ‘risk-off’ situation,” said Saxo Bank FX strategist John Hardy.
In Asia, Japan +0.5% to 16736. Hong Kong +0.8% to 19852. China +0.7% to 2825. India -0.4% to 25302.
In Europe, at midday, London +1.4%. Paris +1.1%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.3%. S&P +0.2%. Nasdaq +0.3%. Crude +0.4% to $48.33. Gold +0.2% to $1257.40.
Ten-year Treasury Yield +1 bps to 1.86%
Economic Calendar
10:00 Existing Home Sales
1:00 PM Baker-Hughes Rig Count
PTG Trading
Price could not hold bid above CD1 Low (2030.75) and as such, forced selling pushed price down to projected support zone outlined in prior DTS 5.19.16. Late session reversal propelled price back to opening and session high.
In overnight trade price has extended its rally back to 2043.50 3 Day Central Pivot. Today is Options Expiry and price is back to long-term balance, so expectation is for muted trade activity. Current larger swing remains down as bulls still need to convert 2048 to support at minimum.
Today is Cycle Day 3 (CD3)…The current up swing rally off extreme cycle low has legs to continue should bulls be able to convert 2048 to support. Stranger things have happened, but 3 Day Average Cycle Target is 2058 SPOT.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2059.30; LOD Range Projection: 2025.20; CD3 Max Penetration Level: 2055.84; CD3 Max Violation Level: 2011.00; Cycle Day 1 Low: 2030.75; 3 Day Central Pivot: 2043.50; 3 Day Cycle Target: 2058.00; 10 Day Average True Range: 22.05
**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 bid above 2038, THEN initial objective is to convert 2048 to upper support. Should this occur bulls gain the advantage targeting 2058 Cycle Target.
Scenario 2: Violation and conversion of 2038 back to resistance would project further price weakness…Critical support zone between 2035.25 – 2033.50 would come back into play for bulls to defend.
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