The world will consume less oil next year than previously thought due to a “dimmer macroeconomic outlook,” the IEA said in its monthly oil market report. The energy watchdog expects global oil demand to grow by 1.2M barrels per day in 2017, a decrease of 100K bpd compared with last month’s forecast. Adding to the recent pressure on crude prices, EIA data on Wednesday showed a U.S. crude inventory build of 1.1M barrels last week, while Saudi Arabia said its output hit a record high in July.
In Asia, Japan -0.2% to 16735. Hong Kong +0.4% to 22581. China -0.5% to 3002. India +0.3% to 27859.
In Europe, at midday, London -0.3%. Paris +0.7%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.3%. S&P +0.2%. Nasdaq +0.3%. Crude -0.3% to $41.58. Gold -0.1% to $1350.
Ten-year Treasury Yield +1 bps to 1.51%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Import/Export Prices
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $15B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
“Houston…We Have Some Movement”…:Houston…Never Mind…It was a False Positive”….
Price did get a Cycle Day 1 decline as normally expected and “da Bears” got real excited and began pressing positions…Problem here is that they were not able to convert any key level to resistance.
Today is Cycle Day 2 (CD2)…Price held 2166 Key Support which is approximately 10 Day ATR Range of ONLY 14 handles…Well below historical norms. Overnight trade has price back up 12 handles @ 2178 as Cycle Rally is back on track.
Range Projections and Key Levels: Sept (U) Contract
**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: Price is rallying off CD1 Low (2167.75)…Price will need to hold any pullback retest above 2172 – 2168 handles. Conversion of 2183.50 to upper support could springboard price higher to 2189 – 2193 zone.
Scenario 2: Failure to convert 2183.50 keeps price within recent range (2168 – 2183)…Violation of 2173 – 72 zone opens door for CD1 Low (2167.75) retest.
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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