Markets

Major global stock indices were flat-to-lower at the time of writing as investors stayed cautious amid news of a police raid in Paris on suspected terrorists (see below) and ahead of the release later today of the FOMC minutes from its meeting in late October. It’s safe to assume that the document will be scrutinized for indications as to whether the Fed will raise interest rates in December.

Today’s Economic Calendar

7:00 MBA Mortgage Applications
8:30 Housing Starts
10:00 Atlanta Fed’s Business Inflation Expectations
10:30 EIA Petroleum Inventories
12:00 PM Fed’s Kaplan: Monetary Policy
2:00 PM FOMC minutes

PTG Trading

Yesterday was a textbook Cycle Day 2 (CD2), as price consolidated recent price gains…Average Cycle Target (2041.00) which was surpassed in Monday’s Session became support during Tuesday’s Session. We will mark this level as key support. Price is also back above two consecutive 3 Day Central Pivots…As long as price remains above 2036.50 SPOT, this will continue to support renewed bullish trade action.

Today is Cycle Day 3 (CD3)…NORMAL SPILL UP…Though price is above Cycle Targets, there remains additional room for further upside expansion should prior high (2063.50) is converted.

Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 22.00; Possible HOD = 2065.00; Possible LOD = 2041.50.

***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 2051.50, THEN initial upside is 2065.75…Above this level measures 2071.00 SPOT.

Scenario 2: Failure to convert 2051.50 and subsequent violation of 2041.50 opens door to deeper pullback targeting 2036.50 3-Day Central Pivot.

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