Markets
Eurozone growth will be slower than previously expected with subdued inflation in 2016, the European Commission announced in its spring economic forecast, warning of high risks to the bloc’s economy. The GDP of the 19-nation area is now predicted to expand just 1.6% this year, less than the 1.7% growth of 2015, while consumer prices are seen up 0.2%, significantly below the 0.5% increase projected in February. “The economic recovery in Europe continues but the global context is less conducive than it was,” Commission Vice President Valdis Dombrovskis said in a statement.
Today’s Markets
In Asia, Japan closed. Hong Kong -2% to 20645. China +1.9% to 2993. India -0.8% to 25230.
In Europe, at midday, London -1.2%. Paris -1.7%. Frankfurt -1.9%.
Futures at 6:20, Dow -0.6%. S&P -0.6%. Nasdaq -0.7%. Crude -1.3% to $44.21. Gold +0.2% to $1298.
Ten-year Treasury Yield -6 bps to 1.80%
(Source: Seeking Alpha)
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:30 Fed’s Mester speech
7:00 PM Fed’s Lockhart: Economic Outlook and Monetary Policy
HOD Range Projection = 2076.13; LOD Range Projection = 2058.87; CD2 Maximum Penetration Level = 2086.88; CD2 Maximum Violation Level = 2038.66; Cycle Day 1 Low = 2055.50; 3 Day Central Pivot = 2069.50; 3 Day Cycle Target = 2078.78;10 Day Average True Range = 17.38.
**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 will need to hold above 2055.50 – 2058.87 zone and convert 2063.50 to support for a rally to unfold. Should this occur, initial objective is 2068 – 2070 zone.
Scenario 2: IF price violates and converts 2055.50 (CD1 Low) to resistance, THEN trap door opens to retest 2046 – 2048 zone (Friday’s Low). Failure to find responsive buyers in sufficient quantity targets 2038.66 – 2034.00 Statistical Extremes.
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