Markets
With trade war drums beating loudly, a strong employment report from the Labor Department this morning will probably do little to dial back market expectations that the Fed will cut interest rates this year. Nonfarm payrolls probably increased by 185,000 jobs last month after surging 263,000 in April, a figure that’s well above the roughly 100,000 needed per month to keep up with growth in the working age population. Average hourly earnings are forecast to have increased 0.3% after rising 0.2% in April, while the unemployment rate is expected to have remained near a 50-year low of 3.6%.
Wall Street futures are ahead by 0.3%, pointing to a fourth consecutive session gain, as investors anticipate a near-term immigration agreement between the U.S. and Mexico, and extend bets on further central bank easing around the world. While the White House still intends to impose tariffs on Mexican imports this Monday, reports suggest “significant progress is being made” in negotiations. Investors are also continuing to digest yesterday’s ECB decision day, including revelations that policymakers have been discussing potential rate cuts and an extra bout of quantitative easing.
In Asia, Japan +0.5%. Hong Kong closed. China closed. India +0.2%.
In Europe, at midday, London +0.9%. Paris +1.5%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.8% to $53. Gold -0.4% to $1338. Bitcoin +2.2% to $7969.
Ten-year Treasury Yield flat at 2.13%
(Source: Seeking Alpha)
Economic Calendar
12:00Fed’s Daly Speech on Sunday
8:30Non-farm payrolls
10:00Wholesale Trade
1:00 PMBaker-Hughes Rig Count
3:00 PMConsumer Credit
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S&P 500
Today is Cycle Day 3 …Price is set to close the week out posting a strong rebound performance with a Weekly Bullish Engulfing Candle.
Price is currently above PH (2853)…IF price converts this level, THEN expansion targets measures 2862 – 2872 Cycle Day 3 Penetration Range Zone.
CD3 Range High = 2870.00 CD3 Range Low = 2823.00 CD3 Range Avg = 34.00
Scenario 1: IF Bulls hold bid above 2853, THEN initial upside targets 2862 – 2872 zone.
Scenario 2: IF Bears hold offer below 2853, THEN initial downside targets 2848 – 2838 zone.
Range Projections and Key Levels (ES) June (M) Contract
HOD ATR Range Projection: 2872.00; LOD ATR Range Projection: 2823.00; Cycle Day 1 Low: 2801.00; 3 Day Central Pivot: 2813.50; 3 Day Cycle Target: 2839.50; 10 Day Average True Range 34.50; VIX: 15.50
Nasdaq 100 (NQ)
Today is Cycle Day 3…Price is set to close the week out posting a strong rebound performance with a Weekly Bullish Reversal Candle.
Price is currently above PH (7299.25) and has fulfilled 7321 Cycle Day 3 Penetration Objective.
CD3 Range High = 7315.00 CD3 Range Low = 7217.00 CD3 Range Avg = 104.00
Scenario 1: IF Bulls hold bid above 7300, THEN initial upside potential targets 7315 – 7321 zone.
Scenario 2: IF Bears hold offer below 7300, THEN initial downside targets 7263 – 7258 zone.
Range Projections and Key Levels (NQ) June (M) Contract
HOD ATR Range Projection: 7375.00; LOD ATR Range Projection: 7204.00; Cycle Day 1 Low: 7150.25; 3 Day Central Pivot: 7192.00; 3 Day Cycle Target: 7264.50; 10 Day Average True Range: 117.26; VIX: 15.50
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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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