Markets
Equity markets are looking to shift their focus back to corporate results, with Alcoa (NYSE:AA) kicking off the second-quarter earnings season after today’s closing bell. Yet even with the S&P 500 scraping up against a record high, triggered by Friday’s strong jobs report, some investors remain cautious in light of uncertainty about the Fed’s plan for rates, upcoming U.S. elections and ripple effects from the Brexit.
In Asia, Japan +4% to 15708. Hong Kong +1.5% to 20881. China +0.2% to 2994. India +1.8% to 27627.
In Europe, at midday, London +0.5%. Paris +0.7%. Frankfurt +1.1%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.5%. Crude -1.6% to $44.70. Gold +0.2% to $1360.40.
Ten-year Treasury Yield +1 bps to 1.37%
(Source: Seeking Alpha)
Economic Calendar
10:00 Labor market condition index
10:00 Fed’s George: U.S. Economy
1:00 PM Results of $24B, 3-Year Note Auction
9:30 PM Fed’s Mester speech
PTG Trading
Markets have been gearing up recently for an assault on the yearly highs. Friday’s Employment Report was the needed spark to ignite the rally, as price vaulted higher and never looked back closing 2125.50 (SPX) new 2016 high.
Today in Cycle Day 2 (CD3)…Overnight trade has price marginally higher as residual momentum may continue before the next decline begins. Violation and conversion of PH (2125.50) would be initial sign of weakness.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2147.75; LOD Range Projection: 2105.25; CD3 Max Penetration Level: 2134.50; CD3 Max Violation Level: 2093.50; Cycle Day 1 Low: 2081.75; 3 Day Central Pivot: 2096.00; 3 Day Cycle Target: 2105.00; 10 Day Average True Range: 27.75
**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 1: IF price converts PH (2125.50), THEN initial objective targets 2134.75 STATX Zone, followed by clear sky to 2147.74 HOD ATR Range Projection.
Scenario 2: Initial Sign of Weakness (SOW) would be violation and conversion of PH (2125.50). IF this occurs, THEN levels to be mindful of are 2116.00, 2111.25, 2106.50.
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. 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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