Trade Strategy 8.29.16

Markets

Traders will fixate on a wave of U.S. economic data this week, crested by payrolls data on Friday that could sway expectations about the timing of a future interest rate hike and spark volatility in record-high stock prices. On Friday, Fed Chair Janet Yellen said the case for a rate hike was strengthening, but left open the timing of what would be the first increase since December 2015. Other upcoming data will detail personal consumption, consumer confidence, car sales and factory activity.

In Asia, Japan +2.3% to 16737. Hong Kong -0.4% to 22821. China flat at 3070. India +0.4% to 27902.
In Europe, at midday, London closed. Paris -1%. Frankfurt -0.8%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -1.5% to $46.95. Gold -0.2% to $1323.30.
Ten-year Treasury Yield -1 bps to 1.61%

(Source: Seeking Alpha)

Economic Calendar

8:30 Personal Income and Outlays
10:30 Dallas Fed Manufacturing Survey

PTG Trading

Push Higher…Push Lower…Price gyrated Friday as timing of (if) interest rate increase remains unclear. With low volumes and participation at a crawl as we enter last vacation week of summertime, most will be focusing on Employment Report this week.

Today is Cycle Day 2 (CD2)…Price declined to just above 2156.25 Average Decline on CD1 during prior session before reversing 10 handles by settlement. The current bounce occurred in ragged fashion, so today could be a bit choppy as price works to find its natural balance zone.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2177.50; LOD Range Projection: 2156.25; Cycle Day 1 Low: 2157.50; 3 Day Central Pivot: 2173.50; 3 Day Cycle Target: 2175.75; 10 Day Average True Range: 13.13

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Click HereToday’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: Bulls will need to fend off any additional selling above CD1 Low (2157.50) and convert 2173.50 to new support.

Scenario 2: Bears need a follow-through day keeping price below 2173.50 handle and forcing a retest of CD1 Low (2157.50).

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