U.S. futures are wading into the green after Friday’s weaker than expected non-farm payrolls number caused investors to revise down the likelihood of the Fed hiking rates in June. The U.S. economy created 160K jobs in April, less than the 202K Wall Street had been expecting, while the jobless rate remained unchanged at 5%. A whole list of Fed speakers will also be hitting the podium this week, and could provide more color about an upcoming rate decision.
In Asia, Japan +0.7% to 16216. Hong Kong +0.3% to 20163. China -2.8% to 2832. India +1.8% to 25689.
In Europe, at midday, London +0.6%. Paris +1.4%. Frankfurt +2%.
Futures at 6:20, Dow +0.2%. S&P +0.3%. Nasdaq +0.3%. Crude +2.3% to $45.70. Gold -1.3% to $1277.70.
Ten-year Treasury Yield flat at 1.78%
(Source: Seeking Alpha)
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
1:00 PM Fed’s Kashkari speech
HOD Range Projection = 2068.55; LOD Range Projection = 2039.95; CD3 Maximum Penetration Level = 2068.81; CD3 Maximum Violation Level = 2020.32; Cycle Day 1 Low = 2039.50; 3 Day Central Pivot = 2047.50; 3 Day Cycle Target = 2068.91;10 Day Average True Range = 19.55
**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 holds near term support (2050.50), THEN initial objective is to clear and convert 2060 handle to support. Should this occur, Bulls have opening to press price higher to achieve 2068.91 Cycle Rally Target.
Scenario 2: Failure to hold bid above prior session close (2052.75) and subsequent violation and conversion of 2050.50 SPOT, opens door to retest lower levels for renewed buy response. Levels to be mindful of are: 2047.50 – 2046.50 zone; 2042.50, 2039.95.
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