Trade Strategy 8.8.16

Markets

There is an increasing risk that the U.S. economy has become trapped in a prolonged period of subdued growth that requires lower official rates than were previously expected, according to Fed Governor Jerome Powell. “With inflation below target, I think we can be patient,” he told the FT, arguing for a “very gradual” path for any rises as the U.S. outlook is still dogged by global risks.

Oil prices are getting a lift from fresh efforts to restrain crude output. “OPEC members including Venezuela, Ecuador and Kuwait are said to be behind this latest reincarnation. But just like previous endeavors, it seems doomed to fail, given key OPEC members (think: Saudi Arabia, Iraq, and Iran) persist in their battle for market share, ramping up exports apace,” said ClipperData’s Matt Smith. Russia’s also ready to join the talks, according to Energy Minister Alexander Novak, who sees no prerequisites to freeze oil output.

In Asia, Japan +2.4% to 16651. Hong Kong +1.6% to 22495. China +0.9% to 3004. India +0.4% to 28183.
In Europe, at midday, London +0.1%. Paris +0.6%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.3%. Crude +1.4% to $42.40. Gold -0.6% to $1337.
Ten-year Treasury Yield flat at 1.57%

(Source: Seeking Alpha)

Economic Calendar

10:00 Labor market condition index
12:30 PM TD Ameritrade IMX

PTG Trading

Bulls held their dominance in prior session as Cycle Day 1 produced only a small decline before the rally continued to reach upper cycle target. Price is higher in overnight trade having reached 2182 symmetrical target we outlined to PTG Members on Friday.

Today is Cycle Day 2 (CD2)…There remains room to continue higher to reach 2187 – 2191 target zone should the bulls be aggressive. First sign of weakness would be trade back below PH (2178.50) and convert to resistance.

Range Projections and Key Levels: Sept (U) Contract

HOD Range Projection: 2191.00; LOD Range Projection: 2168.25; Cycle Day 1 Low: 2159.25; 3 Day Central Pivot: 2161.50; 3 Day Cycle Target: 2187.25; 10 Day Average True Range: 14.77

**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 converts PH (2178.50), THEN primary objective is 2181.50 – 2183.75 STATX Zone. Above this zone measures 2197.25 – 2191 zone.

Scenario 2: Price is currently above PH(2178.50)…First Sign of Weakness (SOW) would be converting this level to resistance. Should this occur, lower levels to be mindful of are: 2171.75 – 2169.00 Central Pivot Zone. LOD Range Projection measures 2168.25.

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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