Trade Strategy 8.11.17

Markets
 
In Asia, Japan closed. Hong Kong -2%. China -1.6%. India -1%
In Europe, at midday, London -1.2%. Paris -1.1%. Frankfurt -0.3%
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.2%. Crude -1% to $48.11. Gold +0.3% to $1293.60. 
Ten-year Treasury Yield -2 bps to 2.19% 
 
(Source: Seeking Alpha)

Economic Calendar 

8:30 Consumer Price Index
1:00 PM Baker-Hughes Rig Count

PTG Trading

We wrote in prior DTS Briefing Report 8.10.17 “Price has notched two consecutive sessions below 3 Day Central Pivot Zone which typically is a bearish signal suggesting a Change of Character (COC).” Price continued it’s bearish selloff dropping 41.50 handles as Volatility Products spiked higher causing margin calls against short-vol players.

Today is Cycle Day 2 (CD2)…No recovery bounce in overnight session, so there is potential for continued margin selling, forcing price lower before finding a natural low. Average Range on CD2 is 14.32 with Max Avg 22.47. 

STAY NIMBLE and ALWAYS USE PROTECTIVE STOPS.

Range Projections and Key Levels

HOD  ATR Range Projection: 2443.85.; LOD ATR Range Projection: 2424.90; Cycle Day 1 Low: 2432.75; 3 Day Central Pivot: 2464.00; 3 Day Cycle Target: 2451.00; 10 Day Average True Range: 13.10

**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 2017 (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 can recover CD1 Low (2432.75) and subsequently convert ONH (2438) to upper support, THEN a possible recovery rally may unfold targeting 2445 handle.

Scenario 2:  Violation and conversion of CD1 Low (2432.75) to lower resistance opens trap door for further selling initially targeting 2425.00, followed by 2421.50, then 2416 – 14 extreme cycle range 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