Markets
Bulls were out in full force yesterday with the S&P hitting an all-time intraday high and oil gaining 3%, but the bears have been growling more loudly recently too. It’s already been about two-and-a-half weeks that U.S. stocks have traded within a 2% range. Bullish side of the equation: improving earnings momentum, junk bonds holding up and central bank policies. Bearish sentiment: lowest volatility in the past year, slower global growth and U.S. election uncertainty.
In Asia, Japan +0.7% to 16765. Hong Kong -0.1% to 22466. China +0.7% to 3026. India -0.4% to 28085.
In Europe, at midday, London +0.3%. Paris +0.5%. Frankfurt +0.6%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +0.3% to $43.13. Gold -0.1% to $1339.40.
Ten-year Treasury Yield flat at 1.57%
(Source: Seeking Alpha)
Economic Calendar
6:00 NFIB Small Business Optimism Index
8:30 Productivity and Costs
8:55 Redbook Chain Store Sales
10:00 Wholesale Trade
1:00 PM Results of $24B, 3-Year Note Auction
PTG Trading
Prior Session’s Range (9.75) and Volume (800k) were barely enough to get a pulse reading…For a day trader it was excruciatingly painful to sit through a session without putting on a trade…But that is exactly what must be done, or take the day-off and do something more productive…This is summertime trade…part of the trading process.
Today is Cycle Day 3 (CD3)…There remains room to expand higher to reach cycle targets…Key parameters to watch for conversion are: 2178 (VAH) and 2174 (VAL).
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2189.00; LOD Range Projection: 2163.50; Cycle Day 1 Low: 2159.25; 3 Day Central Pivot: 2169.50; 3 Day Cycle Target: 2193.75; 10 Day Average True Range: 14.32
**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 2178 (VAH) to support, THEN initial objective is to clear PH (2183.00) and expand price to upside. Upper targets are clustered between 2189 – 2194 STATX Zone.
Scenario 2: Bears need to converts 2174 – 2172 zone to lower resistance to get any meaningful trade lower. So far they have been absent past few cycles. Even “da bears” vacation at the Hamptons.
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