In Europe, at midday, London -0.5%. Paris -0.3%. Frankfurt -1%.
Futures at 6:20 Dow flat. S&P flat. Nasdaq -0.2%. Crude +1.7% to $30.38. Gold +0.2% to $1129.50.
Ten-year Treasury Yield flat at 1.86%
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Gallup U.S. Job Creation Index
8:30 Treasury Refunding Quarterly Announcement
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
PTG Trading
Yesterday’s Cycle Day 1 “Normal Spill Down” was a texted-book CD1 and played out as scripted coming within 1-tic of projected LOD 1888.75 (actual low 1889.00) outlined in prior DTS Report 2.2.16. In overnight trade price pushed a bit lower to 1885.50 (ONL) and has rebounded higher back to 1905.00, which is today’s Central Pivot.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL UP…Bulls will need to stop any further price deterioration and hold above the CD1 Low (1889.00), otherwise long liquidation may unfold. Crude Oil continues to have enormous influence over the equity markets as Correlation Factor = 0.78. 10-Day Average True Range = 40.75.
Range Projections and Key Levels:
HOD Range Projection = 1926.50; LOD Range Projection = 1868.00; Central Pivot = 1905.00; 3 Day Central Pivot Zone = 1913.50 – 1917.00. 3 Day Average Cycle Rally Target = 1923.25.
**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 can hold above 1894.00 SPOT, THEN initial upside objective is 1905.00 Central Pivot…Strength above this level targets 1915.00, followed by 1923.25 then 1926.50.
Scenario 2: Violation and conversion of 1894.00 SPOT opens door to retest 1885.50 (ONL). Failure to hold any test of this level expands range to downside targeting 1884.00 – 1882.00 STATX Zone. Maximum Violation Level for CD2 = 1877.50.
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