Markets

Markets across the globe are still processing the weekend’s coordinated terrorist attacks in Paris that left at least 132 people dead and more than 350 wounded. The events sent Asian bourses lower overnight, while U.S. futures inched higher, erasing earlier losses as they tracked moves in Europe. Among the biggest casualties in the financial markets is the euro, which shed 0.5% to $1.0710, as investors scrambled for safe-havens like the U.S. dollar and gold. The attacks are also likely to hit France’s economy, which has the largest number of tourists in the world. The sector accounts for almost 7.5% of the country’s GDP.

Today’s Economic Calendar

8:30 Empire State Mfg Survey

PTG Trading

S&P 500 e-mini (ES) continued its sell-off Friday as long liquidation kicked in heavily pushing price down to projected extreme 2011.50 outlined in Scenario 2…Here is excerpt: Continued momentum to downside measures 2033.50 – 2028.00 STATX Zone. Below this zone targets 2021.50 SPOT, down to 2015.00 – 2011.50 zone.

In overnight trade, price has initially pushed lower to Average Cycle Range Decline Target of 2004.75 and has since rallied back to 2023.50 Daily Central Pivot. Deep price extremes have been achieved, so the current cycle rally can begin at any time.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Price extremes have already been achieved, so there is greater potential now for a snap-back rally.

Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Average Decline = 21.75; Max Average Decline = 33.75 Possible HOD = 2050.25; Possible LOD = 2004.75

***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 2011.50, THEN expectation is for stronger rally initially targeting 2023.50 Daily Central Pivot. Continued strength above this level measures 2028.75 – 2031.00 SPOT.

Scenario 2: Currently price has rallied to 2023.50 in overnight…IF price gets rejected from this level during cash session, initial downside test will be 2018.00 – 2015.00 Zone…Failure to find sufficient buyers within this zone targets test of 2011.50 SPOT.

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