Trade Strategy 7.26.16

Markets

U.S. futures are hugging the flatline as investors maintain a cautious tone ahead of a two-day FOMC meeting on interest rate policy. The Federal Reserve is all but certain to keep interest rates on hold, acknowledging improved economic prospects, but offering few hints about its next move. Markets are also feeling pressure with oil at three-month lows and another round of second-quarter corporate earnings.

In Asia, Japan -1.4% to 16383. Hong Kong +0.6% to 22129. China +1.1% to 3050. India -0.4% to 27976.
In Europe, at midday, London +0.3%. Paris -0.1%. Frankfurt +0.2%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -0.9% to $42.76. Gold +0.1% to $1320.60.
Ten-year Treasury Yield -1 bps to 1.55%

(Source: Seeking Alpha)

Economic Calendar

FOMC meeting begins
8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
9:45 PMI Services Index Flash
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:00 Richmond Fed Mfg.
10:00 New Home Sales
1:00 PM Results of $34B, 5-Year Note Auction

PTG Trading

Cycle Day 1 (CD1) played out normally as price tested prior high and failed to find a firm bid. As such, early quiet selling leading to more aggressive selling when key support (2164) broke, pushing price down to test Cycle Day 1 Low (2155.25), which held firm.

Today is Cycle Day 2 (CD2)…Barring any break of new Cycle Low (2155.75) price is anticipated to remain relatively stable ahead of FOMC Announcement tomorrow. Price remains within its trading range between 2152 – 2172. Three-Day Central Pivot is 2163.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2177.50; LOD Range Projection: 2151.75; Cycle Day 1 Low: 2155.75; 3 Day Central Pivot: 2163.00; 3 Day Cycle Target: 2179.25; 10 Day Average True Range: 13.30

**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 (2155.75), THEN 1st objective will be to convert 2163 to new support. Should this occur, upside targets 2172 upper edge of range.

Scenario 2: Violation of PL (2155.75) initially targets 2152 SPOT for support test…Failure to hold any such test opens door to a potentially deeper down move targeting 2148.50….2143.50 levels.

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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