Asia markets traded higher on the first day of the new quarter, tracking global stocks’ third day of recovery despite a slew of downbeat manufacturing data. The Nikkei Japan Manufacturing PMI came in at 48.1 in June, marking the fourth straight month of contraction. Twin surveys from China also showed its factory sector still in a rut, with the government’s official PMI easing to 50.0 and Caixin’s figure dropping to 48.6.
In Asia, Japan +0.7% to 15682. Hong Kong closed. China +0.1% to 2932. India +0.5% to 27142.
In Europe, at midday, London +0.6%. Paris +0.3%. Frankfurt +0.4%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude -0.4% to $48.14. Gold +1.1% to $1335.60.
Ten-year Treasury Yield -8 bps to 1.41%
(Source: Seeking Alpha)
Markets continued rallying following a short respite to finally reach 2090, which was HOD Range Projection outlined in prior DTS Report 6.30.16. Overnight trade is relative light with narrow range as price holds above 2082.00 minor support.
Today is Cycle Day 3 (CD3)…This Cycle’s Rally is in-place…Further upside potential exists, though the long 4th of July Holiday weekend may dampen further trade, as volume is expected to drop off, as traders will be taking off to get a jump on holiday festivities.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2115.00; LOD Range Projection: 2055.50; CD3 Max Penetration Level: 2102.50; CD3 Max Violation Level: 2050.00; Cycle Day 1 Low: 2022.75; 3 Day Central Pivot: 2049.50; 3 Day Cycle Target: 2041.00; 10 Day Average True Range: 33.42
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) 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 2: Initial weakness would be failure to convert PH (2091.25), then violation of 2082.00 minor support. Weakness below 2074.00 SPOT gives Bears an opening to press lower. Key Support Marker is 2056 .00 – 2049.50 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!
“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.”
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