Markets

World shares sold off sharply on the first trading day of 2016, as weak manufacturing data from China and a flare up in tensions between Saudi Arabia and Iran sent traders scurrying from stocks into safe haven assets. The plunge could likely silence any possible “January effect,” which usually sees equities that were sold off in December for year-end tax harvesting rally over the next month as investors scoop them back up at lower prices. (Source: Seeking Alpha)

Today’s Economic Calendar

9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
12:30 PM TD Ameritrade IMX
2:00 PM Gallup US Consumer Spending Measure

PTG Trading

The new year is greeting traders and investors worldwide with a 48 plus handle decline with China data and Middle East tensions flaring up. Easy recipe for sell-off. Hold your hats and buckle your chinstraps as it looks like we are in for a bumpy ride.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Typically we would be anticipating a decline in the magnitude of 23 – 25 handles, price action has effectively double this range in overnight trade. Price has pushed lower to reach Extreme STATX Zone between 2006.25 – 1996.75. We will need to see some price stabilization and let the dust settle before we make any major trade commitments. BE PATIENT and STAY DISCIPLINED.

**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: First sign of price strength will be to convert 2006 handle and stabilize. Should this occur, then initial upside target is 2017.50…Above this level measures 2024.25 – 2027.50.

Scenario 2: Price has already hit deep extremes at STATX Zone 2006.25 – 1996.75. Next lower key pivot for possible buy response is 1991 pivot marked from 12.18.15 low.

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