Activity in China’s service sector expanded again in April, though the gains were slightly less robust than in March, as firms resumed adding staff following a rare decline the previous month. The Caixin services PMI dropped to 51.8 from 52.2, as new business climbed at the fastest pace since the beginning of the year, but expectations remained unchanged. The survey focuses on small- and medium-sized enterprises, while the official data tracks larger firms.
In Asia, Japan closed. Hong Kong -0.5% to 20429. China +0.2% to 2997. India +0.6% to 25262.
In Europe, at midday, London -0.1%. Paris -0.1%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.2%. S&P +0.3%. Nasdaq +0.3%. Crude +3.1% to $45.12. Gold +0.2% to $1277.80.
Ten-year Treasury Yield flat at 1.78%
(Source: Seeking Alpha)
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Gallup Good Jobs Rate
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:50 Fed’s Bullard speech
4:30 Money Supply
4:30 Fed Balance Sheet
HOD Range Projection = 2065.38; LOD Range Projection = 2040.87; CD1 Maximum Penetration Level = 2068.80; CD1 Maximum Violation Level = 2030.56; Cycle Day 1 Low = 2055.50; 3 Day Central Pivot = 2059.75; 3 Day Cycle Target = 2087.35;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 trade to recapture prior CD1 Low (2055.50) producing a “delayed” Positive 3 Day Cycle. Price will need to hold above 2046 – 2048 zone for continued Sign of Strength (SOS). Initial resistance is marked between 2060 – 2062 zone.
Scenario 2: Violation and conversion of the 2046 – 48 zone would potentially negate the current rally (bounce) from deep lows and be a renewed Sign of Weakness (SOW) targeting a retest of 2040 handle prior low. Average Cycle Decline on CD1 measures 2036.91 with CD1 Max Violation Level 2030.56.
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