Markets
Following a choppy trading day on Wall Street, world stocks are heading into the red, with the Dow poised to record its third straight weekly decline. The dip comes ahead of major American and Chinese data releases, which may do little to settle investor nerves over the outlook for the world’s two largest economies. U.S. April retail sales, producer price figures, and the consumer sentiment survey will be published in the next few hours, while Beijing will report monthly data for industrial output, retail sales and investment on Saturday.
In Asia, Japan -1.4% to 16412. Hong Kong -1% to 19719. China -0.3% to 2827. India -1.2% to 25490.
In Europe, at midday, London -0.6%. Paris -0.6%. Frankfurt -0.3%.
Futures at 6:20, Dow -0.4%. S&P -0.4%. Nasdaq -0.4%. Crude -1.7% to $45.91. Gold +0.3% to $1275.30.
Economic Calendar
8:30 Producer Price Index
8:30 Retail Sales
10:00 Business Inventories
10:00 Reuters/UofM Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
6:45 PM Fed’s Williams speech
PTG Trading
Early buying during Globex Session which pushed price up to 2072.50 resistance faded quickly during Cash Session, as aggressive sellers continue their onslaught, pushing price down to LOD Range Projection (2050.65). Late afternoon rally into settlement help squelch much on the session’s weakness.
Today is Cycle Day 1 (CD1)…Overnight trade again is seeing predominantly selling as price is retesting prior low levels. Recent Cycle activity has been marked by extreme moves in both directions, with no real consensus of value. This is a normal process of price discovery in the auction. Bulls will need to stage another recovery from lows and convert 2066.00 to solid support soon or risk a potential deeper downside correction.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2066.15; LOD Range Projection: 2040.85; CD1 Max Penetration Level: 2080.25; CD1 Max Violation Level: 2040.85; Cycle Day 1 Low: 2048.00; 3 Day Central Pivot: 2064.75; 3 Day Cycle Target: 2089.21; 10 Day Average True Range: 19.90
**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 can hold above 2048.00 THEN initial objective will be to convert prior settlement (2058.75) to support. IF bulls are successful, THEN additional upside objectives are 2064.75 – 2066.00 zone.
Scenario 2: Violation and conversion of 2048.00 to resistance opens trap door for continued selling with lower targets measuring 2042 – 2040 zone. Below this zone offers not much in terms of support until 2030 handle.
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
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology 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