The world’s biggest oil producers have agreed to cap output for the first time since the financial crisis. After hours of talks in Algiers, OPEC members committed to lowering production to between 32.5M-33M barrels a day, marking a drop of nearly 750K barrels from August. Oil prices, however, are currently edging off their highs as some investors take profits on Wednesday’s more than 5% surge.
In Asia, Japan +1.4% to 16693. Hong Kong +0.5% to 23739. China +0.4%to 2998. India -1.6% to 27827.
In Europe, at midday, London +1.1%. Paris +1%. Frankfurt +0.7%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -0.4% to $46.85. Gold +0.1% to $1324.40.
Ten-year Treasury Yield +2 bps to 1.59%
(Source: Seeking Alpha)
5:00 Fed’s Harker speech
8:30 GDP Q2
8:30 Corporate Profits
8:30 Initial Jobless Claims
8:30 International trade in goods
8:50 Fed’s Lockhart speech
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:00 Fed’s Powell speech
10:30 EIA Natural Gas Inventory
2:30 PM Fed’s Kashkari speech
3:00 PM Farm Prices
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
5:10 PM Janet Yellen speech
Bulls fended off and reversed early selling weakness closing the session near highs as Market on Close (MOC) Buy Imbalance topped $1 Billion. In overnight trade price has extended marginally higher reaching 2167 High Range Projection.
Today is Cycle Day 1 (CD1)…Prior cycle targets have been exceeded, so as such, the next cycle decline could potentially begin as would be normal for today. Keep in mind that bulls squarely have control as September comes to a close.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) 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 maintain bid above 2158 handle and convert PH (2165.25) to upper support, THEN additional upside extension to 2169 – 2170.50 STATX Zone, followed by 2175 CD1 Max Penetration Level.
Scenario 2: Initial weakness would be failure to extend recent gains above PH (2165.25) along with conversion of 2158 handle to lower resistance. Should this unfold deeper corrective swing may unfold targeting 2150 – 2148 3 Day Central Pivot Zone and CD1 Average Decline Level.
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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