Markets
The European Central Bank has formally started its corporate sector purchase program, with the official buying list to be released on July 18. The criteria for the plan are as follows: Bonds have to be active, euro denominated, have an investment grade rating and be issued within the eurozone. Along with other measures such as ultra-cheap long term loans and government bond-buying, the program aims to kick-start the region’s economy and revive inflation.
In Asia, Japan +0.9% to 16831. Hong Kong -0.1% to 21298. China -0.3% to 2927. India flat at 27020.
In Europe, at midday, London flat. Paris -0.4%. Frankfurt -0.5%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +1.4% to $51.07. Gold +0.7% to $1255.20.
Ten-year Treasury Yield flat at 1.72%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
10:00 Job Openings and Labor Turnover Survey
10:00 Quarterly Services Report
10:30 EIA Petroleum Inventories
1:00 PM Results of $20B, 10-Year Note Auction
PTG Trading
S&P e-mini (ES) continued its assent higher to upper TargetMaster range level (2118) before pulling back a bit lower into settlement. In overnight trade price has successfully tested 2106 handle and has since bounced higher, currently trading 2114.00 pre-cash.
Today is Cycle Day 1 (CD1)…Normal price action would be for some type of decline from CD3 high (2118) today…Current uptrend has enough energy that any decline may be relatively shallow. Key Support marker is now the 2106 handle, so should this level be violated and convert to resistance, further decline would be anticipated. Range projections and key levels are outlined in the next section.
***Special Note: 10-Day Average True Range and Average Volumes continue to contract…This action suggests sellers have lost control and is supportive of current uptrend price swing.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2120.00; LOD Range Projection: 2100.00; CD1 Max Penetration Level: 2127.00; CD1 Max Violation Level: 2095.00; Cycle Day 1 Low: 2082.75; 3 Day Central Pivot: 2105.50; 3 Day Cycle Target: 2109.50; 10 Day Average True Range: 13.65
**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: Price has successfully tested PL (2106.50) in overnight trade and has bounced back above Central Pivot (2111.50)…IF price holds above this level initial objective is to retest PH (2118.00)…should this level convert to support, THEN there is plenty of open space above to continue the current rally.
Scenario 2: Initial sign of weakness would have price trade back below and convert 2111.50…Should this occur, possible retest of 2106 handle would be expected to unfold. Any violation and conversion of this level to resistance opens door for said day type decline. Key zone below is 2104.75 – 2103.25 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.
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