Markets

The ECB’s massive stimulus program has done little to spur manufacturing growth in the eurozone, as factories again resorted to cutting prices to boost trade. Markit’s final manufacturing PMI was 52.3 last month, only slightly up from September, but it has been above the 50 mark that separates growth from contraction for over two years. “With factory production lacking vigor, employment growth sagging to an eight-month low and output prices falling at the fastest rate since February, it’s easy to see why the ECB is considering additional stimulus,” said Chris Williamson, chief economist at Markit.

Today’s Economic Calendar

9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending

PTG Trading

Early price strength pre-cash session on Friday to reach CD2 Penetration Target of 2094.50 seemingly exhausted all the bulls buying power. During cash-session prices progressively slid lower, stabilized during mid-session and accelerated to lows of session by settlement.

In overnight trade price found responsive buyers within STATX Zone (2064.00 – 2067.00) and has rallied to 2076.50 SPOT. Bulls need a conversion above 2078.25 3D CPZ initially and then above 2082.50 to maintain total control.

Today is Cycle Day 3 (CD3)…NEUTRAL SPILL…Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 22.00; Possible HOD = 2092.00; Possible LOD = 2059.00.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses: December (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 hold above CD1 Low (2073.25) and convert 2078.25, THEN upside targets 2082.50 SPOT. Above this level measures 2087.50, then 2092.50.

Scenario 2: Failure to convert 2078.25 Three-Day Central Pivot displays early bullish exhaustion, potentially opening the door to deeper decline targeting 2064.00. Below this level measures 2059.00 CD3 Violation 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!

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

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