Markets

Australia’s central bank kept its cash rate steady at a record low of 2% on Tuesday, but said subdued inflation meant there might be room for further easing if needed. In a brief statement, RBA Governor Glenn Stevens stated the outlook for the economy had actually “firmed a little over recent months” with business conditions improving and employment stronger than expected. That was a change from the October statement when no guidance on policy was offered.

Today’s Economic Calendar

Auto Sales
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:00 Factory Orders

PTG Trading

Bulls took immediate charge of price and direction pushing higher in slow methodical trend up fashion in prior session to ultimately reach 3 Day Average Cycle Target of 2099.25 and 2105 Cash SPX. Expectation for today is for some back n fill to absorb recent gains.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Average Decline = 21.75; Possible HOD = 2108.75 CD1 Penetration ; Possible LOD = 2078.26 Average Decline.

***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 clears and converts PH (2100.00), THEN expansion of range targets 2103.75 – 2107.75 STATX Zone with 2108.75 CD1 Penetration Level.

Scenario 2: Today is CD1 and normal spill down with good odds (72%) of decline at least 10 handles. Any deep decline is expected to find responsive “dip buyers” at key spots. Levels to be mindful of on pullback for potential support are: 2091.00 – 2089.25 zone followed by 2087.50 – 2085.75 Central Pivot Zone. Key Support is marked at 3 Day CPZ between 2083.00 – 2081.50. Average Cycle Decline Range Decline Target is 2078.25.

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!

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