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)
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
**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: 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!
“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.”
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