Markets

Asian stock markets remained wobbly on Wednesday after a mixed batch of Chinese data showed growth in the world’s second largest economy still in low gear. October industrial production growth cooled to 5.6% last month, while urban fixed asset investment for the January-October period increased 10.2%, its slowest annual pace in over two decades. Retail sales helped offset the weakness, accelerating by 11% from a year earlier. Separately, the FSB’s new global capital rules may require China’s four biggest banks to raise up to $400B, an onerous task that could pressure lending at a time when Beijing needs to boost economic growth. (Source: Seeking Alpha)

Today’s Economic Calendar

7:00 MBA Mortgage Applications

PTG Trading

S&P 500 E-mini successfully tested, held and rallied from 2066.00 Key Support SPOT back to and above 2077.50 YELL / CD1 Low to cap Positive 3 Day Cycle. The rally which began yesterday has energy to continue moving prices higher. Initial Key Decision Point will be 2087.50 3 Day Central Pivot. Expectation will be for some responsive selling to develop near this level…

Overnight trade has price above PH (2079.00) testing 2087.50 SPOT. Expectation will be be for continued buy responsive back to 2077 – 79 zone.

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 = 21.00; Max Average Decline = 35.00.

***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 clears and converts PH (2079.00), THEN initial upside targets 2087.50 3D CPZ. Strength above this level expands to 2090 – 2092 Zone.

Scenario 2: Currently price is above PH (2079.00) and testing 2087.50 SPOT. Expectation is for sell response to develop at or near this level. Rejection from this level reverses current upside trade targeting back down to test PH (2079.00). Violation and conversion of this level opens door to probe lower for renewed buy response. Levels to be mindful of are: 2080.75 – 2079.25 3D CPZ. then 2077.50 YELL.

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