Trade Strategy 7.18.16

Markets

The Istanbul 100 Index slid 5.1% this morning, while the Turkish lira rebounded 3% to 2.9274 vs. the greenback, following Friday’s failed coup attempt that left 290 people dead and over 6,000 arrested. NATO allies have thrown their support behind President Erdogan, but tension is still high over his demand to extradite a U.S.-based cleric whom he blamed for the overthrow attempt. Is the West shifting its stance of wanting a thriving democracy in countries like Turkey and Egypt, or at this point, does it just want strength and stability?

In Asia, Japan +0.7% to 16498. Hong Kong +0.7% to 21803. China -0.4% to 3044. India -0.3% to 27747.
In Europe, at midday, London +0.3%. Paris -0.4%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude -0.6% to $46.39. Gold -0.1% to $1326.80.
Ten-year Treasury Yield -2 bps to 1.57%

(Source: Seeking Alpha)

Economic Calendar

10:00 NAHB Housing Market Index
4:00 PM Treasury International Capital

PTG Trading

Friday’s Cycle Day 1 Session played out normally as residual strength initially pushed price higher forcing the last buyer to step in…The decline then began as long positioned traders took profits into options expiration. The decline was relatively shallow not violating any key support zone and as such the uptrend remains in effect.

Today is Cycle Day 2 (CD2)…Overnight trade is quiet with narrow range. Bulls objective is to not give up any gains and keep price stable within current uptrend. Three-Day Central Pivot Zone structure is solidly bullish and would take a conversion of 2146 – 36 zone to shift current dynamics.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2177.00; LOD Range Projection: 2137.00; Cycle Day 1 Low: 2149.00; 3 Day Central Pivot: 2151.00; 3 Day Cycle Target: 2172.00; 10 Day Average True Range: 19.55

**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: 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 holds above PL (2149.00) THEN first objective would be to clear and convert 2159 to support, which would open door to retest 2066 – 69 zone.

Scenario 2: Violation and conversion of PL (2049.00) would be a pavement crack potentially leading to lower prices. Levels below to be mindful of are: 2144 handle, 2140 – 2137 STATX 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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