Markets

European stocks and U.S. futures are sporting solid gains after the Shanghai Composite managed to squeeze out a 0.2% advance in a volatile session overnight. Oil continued its plunge, dropping to within pennies of a $29 handle before rebounding to $31.12 per barrel – still lower by 0.9% for the day. The Q4 earnings season is underway after Alcoa last night reported mixed results. Still to come this week are Intel, JP Morgan, Wells Fargo, and Citigroup, among others.

In Asia, Japan -2.7% to 17219. Hong Kong -0.9% to 19712 . China +0.7% to 3216. India -0.6% to 24682.
In Europe, at midday, London +1.2%. Paris +2.2%. Frankfurt +2.4%.
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude -0.9% to $31.12. Gold -0.2% to $1094.10.
Ten-year Treasury Yield Flat at 2.19%.

 

(Source: Seeking Alpha)

Today’s Economic Calendar

5:30 Stanley Fischer
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
1:00 PM Results of $24B, 3-Year Note Auction
3:15 PM Fed’s Lacker: Economic Outlook

(Source: Seeking Alpha)

PTG Trading

Price action played out as scripted in prior DTS Report 1.11.16. Price touched 1928.50 early and was rejected, then sold down to test 1895.00 at which time market was confident of a secure cycle low. Final pullback to 1901 support propelled price higher in late day rally closing near highs of session.

Today is Cycle Day 1 CD1)…NORMAL SPILL DOWN…Odds favor yesterday’s low is secure, which now sets up price for a rebound rally initially projecting 1943.00 SPOT followed by 1958.75 3 Day Cycle Target.

Average True Range (3) remains elevated at 44 handles, so as such we well diverge from normal cycle metrics until they stabilize. CD1 Average Penetration Level = 1938.50; HOD Range Projection 1943.00; CD1 Average Violation Level = 1895.00; LOD Range Projection = 1886.50.

**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 1928.50, THEN initial upside objective is 1938.50, followed by 1943.00 SPOT. Above this level measures 1950.00 , then 1958.75.

Scenario 2: Violation of 1925.00 SPOT reverses current upside momentum initially targeting 1912.50.

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