Trade Strategy 7.8.16

Markets

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)

Economic Calendar

8:30 Non-farm payrolls
1:00 PM Baker-Hughes Rig Count
3:00 PM Consumer Credit

PTG Trading

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.

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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 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!

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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