Trade Strategy 7.27.16

Markets

The Federal Reserve is expected to stand pat at its meeting today, bowing this time to global volatility from the U.K.’s Brexit vote after staying on hold since it raised rates in December. Central to the debate at the Fed’s policy meeting will be how to reconcile upbeat U.S. economic data, highlighted by strong job gains in June, with a slowdown in global growth and other headwinds threatening the inflation trajectory.

In Asia, Japan +1.7% to 16664. Hong Kong +0.4% to 2219. China -1.9% to 2992. India +0.2% to 28024.
In Europe, at midday, London +0.5%. Paris +1.5%. Frankfurt +0.8%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.7%. Crude -0.6% to $42.67. Gold flat at $1320.50.
Ten-year Treasury Yield flat at 1.56%

(Source: Seeking Alpha)

Economic Calendar

7:00 MBA Mortgage Applications
8:30 Durable Goods
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
11:30 Results of $15B, 2-Year FRN Auction
2:00 PM FOMC Announcement

PTG Trading

Not much to add in today’s Briefing…Price remains locked between 2152 – 2172 edges as volumes continue to be sub-par…10-day average range now stands at 12.75…Portfolio Managers are sifting through reams of corporate earnings reports. All this has resulted in lackluster trading and few opportunities for intra-day traders.

Today is Cycle Day 3 (CD3)…With FED Announcement on tap today @ 2 pm price action could simply go either way, though typically there is an upward drift in price ahead of policy releases.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2176.50; LOD Range Projection: 2151.75; Cycle Day 1 Low: 2155.75; 3 Day Central Pivot: 2163.50; 3 Day Cycle Target: 2185.00; 10 Day Average True Range: 12.75

**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 clears and converts 2166 handle, THEN primary objective is to convert 2172 handle to upper support.

Scenario 2: Violation and conversion of 2160 handle would qualify for initial sign of weakness…Should this occur primary objective for Bears is to force selling below 2152 – 2154 key support 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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