Trade Strategy 6.29.16

Markets

Amid heightening Brexit tensions, European leaders are arriving for the second and final day of talks in Brussels, where an outline for a new road map for global economic policy makers is expected. Heads of EU governments told Britain yesterday to act quickly to resolve the political and economic confusion unleashed by its vote, while Mario Draghi said the decision could reduce eurozone growth by a cumulative 0.3%-0.5% over the next three years.

In Asia, Japan +1.6% to 15567. Hong Kong +1.3% to 20436. China +0.7% to 2932. India +0.8% to 26740.
In Europe, at midday, London +2.3%. Paris +2.6%. Frankfurt +1.9%.
Futures at 6:20, Dow +0.6%. S&P +0.7%. Nasdaq +0.8%. Crude +1.3% to $48.48. Gold +0.1% to $1319.80.
Ten-year Treasury Yield flat at 1.46%

(Source: Seeking Alpha)

Economic Calendar

7:00 MBA Mortgage Applications
8:30 Personal Income and Outlays
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
3:00 Farm Prices

PTG Trading

As fears subsided and cooler minds prevailed, markets found a firm bid and rallied sharply in prior session recovering nearly half of the sell-down last week. So as the initial shock wave effects diminish, price will find a natural balance zone. Volatility is anticipated to remain elevated which should provide ample profitable trading opportunities for the disciplined trader.

Today begins a new Cycle Day 1 (CD1)…Projected Cycle Rally Target (2041.00) has been achieved as outlined in prior DTS Report 6.28.16. Residual bullish momentum may continue before the next cycle decline begins. As price is near the 50% retracement level, be on high alert for signs of price weakness in current swing up.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2054.50; LOD Range Projection: 2011.50; CD1 Max Penetration Level: 2038.25; CD1 Max Violation Level: 1991.00; Cycle Day 1 Low: 1999.00; 3 Day Central Pivot: 2018.00; 3 Day Cycle Target: 2041.00; 10 Day Average True Range: 31.70

**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 is currently above PH (2029.00) and has reached 2041.00 Cycle Target. Price momentum will need to continue into cash session to keep current rally intact.

Scenario 2: Failure to convert 2041 to upper support and/or violation of PH (2029.00) opens door for possible reversal and shift in current bullish swing dynamics. Key Support zone is marked between 2022.50 – 2013.50 3 Day Central 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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