Markets
Crude is trading higher on the back of a rare bullish call from Goldman Sachs, which until now had been a long-time bear on oil and even warned of another price crash due to overflowing storage. The investment bank says the market has moved from a state of oversupply to a deficit, and believes major supply disruptions in markets such as Nigeria, Venezuela and China will sharply lower production levels. Crude futures +2% to $47.14/bbl.
In Asia, Japan +0.3% to 16466. Hong Kong +0.8% to 19883. China +0.8% to 2851. India +0.6% to 25653.
In Europe, at midday, London -0.5%. Paris -1.1%. Frankfurt closed.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +2% to $47.14. Gold +0.9% to $1283.60.
Ten-year Treasury Yield flat at 1.71%
Economic Calendar
8:30 Empire State Mfg Survey
10:00 NAHB Housing Market Index
4:00 PM Treasury International Capital
PTG Trading
S&P ended the prior Week on a negative note, as “risk-off” ahead of weekend took full control with traders not willing to hold positions. Prices are off their lows in overnight trade but remain below downtrend line. Bulls will need to recapture and convert 2066.00 SPOT to solid support, otherwise continued selling pressure may persist.
Today is Cycle Day 2 (CD2)…Price is currently above CD1 Low (2038.50)…IF price can hold above this level and subsequently convert 2048.25 Central Pivot to support, THEN a relief rally has possibility of unfolding. Violation and conversion of PL (2038.50) keeps selling pressure intact.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2054.98; LOD Range Projection: 2029.27; CD2 Max Penetration Level: 2072.46; CD2 Max Violation Level: 2026.84; Cycle Day 1 Low: 2038.50; 3 Day Central Pivot: 2058.00; 3 Day Cycle Target: 2061.50; 10 Day Average True Range: 19.98
**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 holds above 2038.50 and subsequently converts 2048.25, THEN initial objective will be to reach 2055, followed by 2058.00 3D Central Pivot. Above this level targets 2061.50 Average Cycle Target.
Scenario 2: Failure to convert 2048.25 and subsequent conversion of 2038.50 to resistance opens door for further selling targeting 2032.75, 2029.27 – 2026.84 deep extreme 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
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