Trade Strategy 6.20.16

Markets

World equities have their rally caps back on after weekend polls suggested Britain was more likely to vote to remain in the EU in Thursday’s referendum. Sterling is getting a massive boost on the news, with the pound up 2% against the dollar at $1.4646. Campaigning activities have also resumed in the U.K. as both camps tone down their rhetoric following the killing of Labour Party lawmaker Jo Cox.

In Asia, Japan +2.3% to 15965. Hong Kong +1.7% to 20510. China +0.1% to 2889. India +0.9% to 26867.
In Europe, at midday, London +2.9%. Paris +3.3%. Frankfurt +3.4%.
Futures at 6:20, Dow +1.2%. S&P +1.3%. Nasdaq +1.3%. Crude +1.7% to $49.37. Gold -0.8% to $1285.10.
Ten-year Treasury Yield +5 bps to 1.67%

(Source: Seeking Alpha)

Economic Calendar

1:00 PM Results of $26B, 2-Year Note Auction

PTG Trading

US Markets are prepped for a gap higher open as Bremain is the more likely vote outcome of Britian’s referendum on the 23rd. Does anyone really believe that they would vote to leave the EU? Sentiment runs so deep within the markets that it is clear emotions are a key driver of price action. Calm minds prevail in the end.

Today is Cycle Day 3 (CD3)…Price has exceeded all cycle range targets, so the bulls being clearly in control will need to maintain such on pullbacks. Price remaining squarely above 2073 – 76 zone shifts current dynamics to the bullish side.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2087.75; LOD Range Projection: 2069.50; CD3 Max Penetration Level: 2083.50; CD3 Max Violation Level: 2042.50; Cycle Day 1 Low: 2040.75; 3 Day Central Pivot: 2063.50; 3 Day Cycle Target: 2095.00; 10 Day Average True Range: 17.52

**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: IF price maintains bid above PH (2074.75) additional upside momentum targets 2087.75 ATR Range Projection.

Scenario 2: Violation of PH (2074.75) reverses bullish case in favor of bears…Further violation of 2069.50 opens door for deeper slide targeting 2063 – 2061 Pivot 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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