Markets

The Shanghai Composite soared 3.2% today as investors weighed the likelihood of further stimulus from Beijing following data that China’s economy grew at its slowest pace in a quarter of a century. Q4 gross domestic product eased to 6.8% from a year earlier, while full-year growth slipped to 6.9%, adding to the troubling economic picture that’s unsettling traders around the world. Additional December data that missed expectations: Industrial output +5.9%; Retail sales +11.1%; Fixed asset investment growth +10%.

In Asia, Japan +0.6% to 17048. Hong Kong +2.1% to 19636. China +3.2% to 3008. India +1.2% to 24480.
In Europe, at midday, London +2,1%. Paris +2.5%. Frankfurt +2.2%.
Futures at 6:20, Dow +1.6%. S&P +1.6%. Nasdaq +1.6%. Crude +1.7% to $29.91. Gold -0.4% to $1086.90.
Ten-year Treasury Yield +5 bps to 2.08%

(Source: Seeking Alpha)

Today’s Economic Calendar

10:00 NAHB Housing Market Index
4:00 PM Treasury International Capital

(Source: Seeking Alpha)

PTG Trading

Equity markets were closed and futures traded in a relative quiet range, giving traders and investors a well needed “time-out” to gather their composure, following a wild two-week trading period.

Price has rallied in overnight trade to reach range projection of 1902.00 and 3 Day Cycle Rally Target. Average True Range (3) has compressed back to 42.25, still elevated, but down from 61.75 peak.

Today is Cycle Day 3 (CD3)…NORMAL SPILL UP…Cycle targets have already been achieved in overnight trade, though further upside potential remains should Bulls keep control in cash session. Levels to be mindful of are: 1908.00 SPOT; 1912.75; 1923.25; 1927.50; 1893.00 – 1889.50 zone; 1886.50 and 1884.00 SPOTs.

**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 holds above 1886.50 SPOT, THEN upside projects 1902.00 3D Cycle Rally Target, followed by 1908.00 STATX. Further strength above these levels target 1923.25 – 1927.50.

Scenario 2: Violation and conversion below 1886.50 shifts current bullish dynamics back to bear camp with lower targets measuring 1875.00 – 1873.50; 1868.75 – 1865.50 zone.

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