Markets
Stocks are mostly lower and government bond prices higher as U.S. equity futures ease from record levels. “We’re now on to the next shiny new object and that’s earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management. “As long as companies beat earnings estimates, investors will feel comfortable buying stocks.” But with grim Q2 results predicted by analysts, will traders continue the equity buying?
In Asia, Japan +1.4% to 16723. Hong Kong -0.6% to 21673. China -0.2% to 3037. India +0.2% to 27788.
In Europe, at midday, London -0.4%. Paris -1.2%. Frankfurt -1.2%.
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -0.5% to $45.72. Gold +0.3% to $1333.20.
Ten-year Treasury Yield -4 bps to 1.54%
(Source: Seeking Alpha)
Economic Calendar
8:30 Housing Starts
8:55 Redbook Chain Store Sales
PTG Trading
Summertime trade has arrived, along with 90 degree temps. With ranges narrowing and volumes contracting, attention will now be on upcoming companies earning reports. Markets move from contraction and expansion phases…Past two session ranges have contracted producing dual-inside days.
Today is Cycle Day 3 (CD3)…There remains room to expand higher to vault to upper price targets, but first hurdle is to convert 2162 to new support. Violation of CD1 Low (2149.00) would be Sign of Weakness, though expectation is for continued responsive buying should any weakness develop.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2171.00; LOD Range Projection: 2141.00; Cycle Day 1 Low: 2149.00; 3 Day Central Pivot: 2155.50; 3 Day Cycle Target: 2179.25; 10 Day Average True Range: 19.88
**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 clears and converts 2162 handle, THEN primary objective is to push higher through 2164 – 2166 STATX Zone. Beyond this zone are upper targets: 2171, 2173.50, 2179.25.
Scenario 2: Violation and conversion of CD1 Low (2149) would be first SOW targeting 2125 – 2141 lower STATX Zone.
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