Markets
Japan’s Finance Minister has described the dollar’s recent falls vs. the yen as “one-sided movements” and vowed to intervene if necessary to continue the country’s fight against deflation. “We are watching moves with a sense of tension,” Taro Aso told a press conference after the greenback sank to a 17-month low of 107.67 yen on Thursday. “We will take necessary steps in accordance with circumstances.” The dollar has tumbled nearly 10% against the Japanese currency this year, with the past week accounting for roughly 3% of the move.
In Asia, Japan +0.5% to 15822. Hong Kong +0.5% to 20370. China -0.8% to 2985. India -0.1% to 24674.
In Europe, at midday, London +0.7%. Paris +0.9%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.6%. S&P +0.6%. Nasdaq +0.7%. Crude +3.5% to $38.57. Gold -0.4% to $1232.70.
Ten-year Treasury Yield +3 bps to 1.72%
(Source: Seeking Alpha)
10:00 Wholesale Trade
1:00 PM Baker-Hughes Rig Count
HOD Range Projection = 2051.38; LOD Range Projection = 2027.87; CD3 Maximum Penetration Level = 2059.84; CD3 Maximum Violation Level = 2018.30; Cycle Day 1 Low = 2035.00; 3 Day Central Pivot = 2045.50; 3 Day Cycle Target = 2065.39; 10 Day Average True Range = 21.13.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) 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 2035.00 (CD1 Low), THEN upside objective targets 2041.00 Central Pivot up to 2048.00 SPOT prior Breakpoint. Price will nee to find stable balance zone within this zone to neutralize recent selling.
Scenario 2: Price has rallied higher in overnight trade to reach 2048.00 Breakpoint…Expectation is for is level to illicit some initial resistance for cash session. Violation and conversion of 2038 opens door yet again for continued selling.
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