In Europe, at midday, London +0.6%. Paris +0.3%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq flat. Crude +0.2% to $46.52. Gold -0.2% to $1224.10.
Ten-year Treasury Yield +2 bps to 2.39%
(Source: Seeking Alpha)
Economic Calendar
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:00 Wholesale Trade
1:00 PM Results of $24B, 3-Year Note Auction
PTG Trading
The “BIG” story is Volatility Index (VIX) dropping to 9.67 AND 10-day Average True Range dropping to 10.93. These are conditions that have been plaguing intra-day traders for months and is not showing signs of reversing. Active traders simply are standing-aside which only exacerbates “dampening” volatility even more…The main strategy of hedge funds recently has been to “sell (short) volatility” which has been profitable, though should a shock event hit the markets, the unwinding of these positions would be the spark to drive Vol Higher and stocks lower.
Today is Cycle Day 3 (CD3)…Price has tested and holding 2389 – 2392 breakout zone and is currently testing 2397 upper range edge. Our outlook remains that 2400+ handle is more likely to be achieved in the coming days.
Range Projections and Key Levels
HOD ATR Range Projection: 2404.00; LOD ATR Range Projection: 2386.75; Cycle Day 1 Low: 2379.00; 3 Day Central Pivot: 2391.00; 3 Day Cycle Target: 2397.43; 10 Day Average True Range: 10.93
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June 2017 (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 clears and convert 2398 to upper support, THEN upside is open to push for 2400 – 2405 zone.
Scenario 2: IF price violates and converts 2392 to lower resistance, THEN downside is open to 2386, followed by 2381 (YELL).
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.
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