Markets
The stakes are high as Janet Yellen prepares to take the stage in Philadelphia this afternoon following a shock non-farm payrolls report on Friday that sent the dollar tumbling. Investors will be looking to see whether Yellen, who recently said she expects interest rates to rise “in the coming months”, sticks to her current tune. The event will also offer the last insight into Fed thinking before a media blackout takes effect ahead of the June 14-15 monetary policy meeting.
In Asia, Japan -0.4% to 16580. Hong Kong +0.4% to 21030. China -0.2% to 2934. India -0.2% to 26777.
In Europe, at midday, London +0.9%. Paris flat. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P flat. Nasdaq +0.1%. Crude +1% to $49.11. Gold +0.1% to $1243.50.
Ten-year Treasury Yield +1 bps to 1.72%
(Source: Seeking Alpha)
Economic Calendar
2:15 Fed’s Rosengren speech
8:30 Gallup US Consumer Spending Measure
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
12:30 PM Janet Yellen speech
2:00 PM Janet Yellen in a discussion with Fed’s Harker
PTG Trading
Friday was Cycle Day 1 (CD1)…Price tested and failed to clear and convert prior high…As such the decline began as NFP Report acted as the catalyst. Price sold down to Violation Levels at which time a reversal rally began closing back near neutral levels for the session.
Today is Cycle Day 2 (CD2)…A good part of this Cycle’s Rally is in place, which may make for a potentially confusing trade session. Price is hovering within multi-day balance zone at 3 Day Central Pivot Zone (2093.75 – 2097.25).
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2109.00; LOD Range Projection: 2087.50; CD2 Max Penetration Level: 2113.50; CD2 Max Violation Level: 2076.50; Cycle Day 1 Low: 2082.75; 3 Day Central Pivot: 2095.50; 3 Day Cycle Target: 2106.50; 10 Day Average True Range: 15.07
**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 at or above 2095.50 3D Central Pivot, initial objective will be to test PH (2106.00)…Successful conversion of this level opens door for continued rally targeting 2109 – 2113.50 zone.
Scenario 2: Any rally attempt that fails to convert PH (2106.00) keeps price contained within sideways price range. Violation and conversion of 2095.50, opens door to retest 2088 – 2086 lower edge of range. Breakdown through this zone targets 2083 down to 2076.50 extremes.
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.
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