Markets

Equities across the world are rallying after a historic rate hike from the Fed signaled a mark of confidence in the world’s largest economy. Markets were also soothed by Janet Yellen’s assurance that future tightening would be “gradual” and dependent on higher inflation. What else happened following the quarter-point increase? A slew of banks announced they would increase their prime rates, while commodity prices fell due to a stronger U.S. dollar.(Source: Seeking Alpha)

Today’s Economic Calendar

8:30 Initial Jobless Claims
8:30 Current Account
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

PTG Trading

Markets responded positively as dovish tones and assurance of future rate hikes to be “gradual” sent S&P e-mini (ES) higher by 37.75 handles hitting our target of 2068.50 outlined in prior DTS Report 12.16.15.

Overnight trade has extended slightly beyond prior high (2068.75) to hit 2072.25 STATX Zone Level…Trend sentiment is decidedly bullish, so pullbacks are expected to illicit continued buy response. It would take a violation and conversion of 2056.50 SPOT for a deeper price pullback/correction to recent gains.

Today is Cycle Day 3 (CD3)…NEUTRAL SPILL…Cycle targets have been achieved and exceeded…Momentum may take price higher before the next decline begins.

Odds of 3D Rally > 10 = 83%; Odds of 3D Rally > 20 = 54% (both exceeded); Average Range = 17.75; Max Average Range = 22.00; Possible HOD = 2076.50.; Possible LOD = 2050.00.

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

Today’s Hypotheses: March 2016 (H) 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 (2068.75), THEN initial upside objective is 2072.25 – 2076.50 STATX Zone and CD3 Average Penetration Level.

Scenario 2: Violation of 2056.50 would be first sign of price weakness, with initial downside objective of 2050.00 for renewed buy response. Break of this support point would target 2043.50 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