Investors will have a key talking point in hand after the highly anticipated report on U.S. jobs growth for June is released this morning. The consensus estimate is for a nonfarm payrolls bounce of 175K after the weak tally of 38K in May. The market will be looking for confirmation that the May number was a one-time outlier, influenced in part by the Verizon (NYSE:VZ) strike. Some optimistic economists think the NFP mark could come in ahead of 175K on their view that retailers and construction companies dialed up hiring after a soft weather-impacted spring. Today’s report takes on added significance in a post-Brexit environment with Federal Reserve rate hike implications.
In Asia, Japan -1.11% to 15107. Hong Kong -0.7% to 20564. China -0.8% to 9400. India -0.3% to 27134 .
In Europe, at midday, London -0.1%. Paris +0.7%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq flat. Crude +0.4% to $45.33. Gold -0.3% to $1357.80.
Ten-year Treasury Yield flat at 1.39%
(Source: Seeking Alpha)
Prior DTS Report 7.7.16 stated: “Today begins a new Cycle Day 1 (CD1)…Residual momentum may carry price a bit higher before the next decline begins.”
Right on cue price pushed higher early to projected STATX Zone (2100 – 2103) resistance, reversed and violated 2088.50…” violation and conversion of 2088.50 would be an initial Sign of Weakness (SOW).”
Today is Cycle Day 2 (CD2)…Shallow decline in overnight has lead to renewed price strength ahead if this morning’s Employment Report scheduled at 8:30 am. Continued strength targets 2105 handle.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2118.00; LOD Range Projection: 2066.00; CD2 Max Penetration Level: 2114.00; CD2 Max Violation Level: 2069.50; Cycle Day 1 Low: 2081.75; 3 Day Central Pivot: 2087.25; 3 Day Cycle Target: 2105.00; 10 Day Average True Range: 32.47
**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 hold 2088.50 3 Day Pivot Zone, THEN primary target for bulls is 2102 – 2105 zone. Above this zone is clear sky to vault to 2114 – 2118 zone.
Scenario 2: Violation and conversion of 2088.50 – 2086 zone would be Sign of Weakness (SOW), targeting retest of 2081.75 CD1 Low.
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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