Trade Strategy 5.6.16

Markets

The Labor Department will release its broad snapshot of the jobs market this morning, setting the stage for a possible rate hike in June if policymakers can be convinced the economy can handle it. Investors may have lowered their expectations for the April payrolls number after a disappointing ADP reading on Wednesday, but forecasts for a figure above 200K remain high, with the unemployment rate holding steady at 5%.

Today’s Markets

In Asia, Japan -0.3% to 16107. Hong Kong -1.8% to 20089. China -2.8% to 2913. India -0.1% to 25229.
In Europe, at midday, London -0.8%. Paris -1.1%. Frankfurt-0.8 %.
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -0.8% to $43.98. Gold +0.8% to $1281.90.
Ten-year Treasury Yield flat at 1.74%

(Source: Seeking Alpha)

Today’s Economic Calendar
8:30 Non-farm payrolls
1:00 PM Baker-Hughes Rig Count
PTG Trading
Early rally attempt faded as price met resistance at the 3 Day Central Pivot outlined in prior Daily Trade Strategy 5.5.16. Since it was Cycle Day 1 the expected decline did eventually unfold to reach 2040 projected target in Scenario 2 of the report.
Today is Cycle Day 2 (CD2)…NEUTRAL…Main trend condition remains bearish as declining 3 Day Central Pivot continues to notch lower readings. Bulls will need to convert 2056 – 2060 zone to support, otherwise deeper downside is projected. Multiple MOC Buy Imbalances have yet to yield any positive momentum.
Range Projections and Key Levels: June (M) Contract

HOD Range Projection = 2065.55; LOD Range Projection = 2027.20; CD2 Maximum Penetration Level = 2065.83; CD2 Maximum Violation Level = 2025.98; Cycle Day 1 Low = 2039.50; 3 Day Central Pivot = 2052.25; 3 Day Cycle Target = 2061.76;10 Day Average True Range = 19.05

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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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 2036 -2039 zone and convert 2045.25 to support for increased chance for this cycle rally. IF this occurs, THEN initial objective would be to recapture and convert 2047.25, 2052.25, and 2054 to new support.

Scenario 2: Failure to convert 2045.25 to support would be continued Sign of Weakness (SOW)…Subsequent violation and conversion of 2036 handle to resistance opens door for continued selling with lower targets measuring 2027 – 2025 deep extreme zone.

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

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