Markets
Stocks across the globe are lit up green as a dovish tone from Janet Yellen cooled near-term U.S. rate hike bets and WTI came closer to $50 a barrel. At yesterday’s speech in Philadelphia, the Fed chief called the recent U.S. jobs numbers “concerning” and omitted her last message that rates could rise again “in the coming months,” but warned against attaching too much significance to the payrolls data in isolation. Bye-bye summer rate hike?
In Asia, Japan +0.6% to 16675. Hong Kong +1.4% to 21328. China +0.1% to 2936. India +0.9% to 27010.
In Europe, at midday, London +0.4%. Paris +1.2%. Frankfurt +1.7%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.5% to $49.95. Gold -0.3% to $1244.10.
Ten-year Treasury Yield +1 bps to 1.73%
(Source: Seeking Alpha)
Economic Calendar
8:30 Productivity and Costs
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
1:00 PM Results of $24B, 3-Year Note Auction
3:00 PM Consumer Credit
PTG Trading
S&P e-mini (ES) held 2095 key support outlined in prior DTS Briefing 6.6.16, as price continued this cycle rally up to and exceeding 2109.50 Average Cycle Rally Target. In overnight trade price has extended the rally to 2114.25 – 2116.25 Statistical Extreme Zone.
Today is Cycle Day 3 (CD3)…This Cycle’s upside objectives have been met, so residual bullish momentum could certainly continue to push higher or pullback/decline could begin at any time. First Sign of Weakness (SOW) would be trading back below and converting CD2 High (2112.25).
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2122.25; LOD Range Projection: 2100.50; CD3 Max Penetration Level: 2120.75; CD3 Max Violation Level: 2090.50; Cycle Day 1 Low: 2082.75; 3 Day Central Pivot: 2099.50; 3 Day Cycle Target: 2109.50; 10 Day Average True Range: 15.73
**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 PH (2112.25), THEN initial upside objective measures 2114.25 – 2116.25 STATX Zone. Above this zone measures 2120.75 CD3 Maximum Penetration Level…ATR Range Projection is 2122.25.
Scenario 2: Price is currently above PH (2112.25)…Violation and conversion back below this level would be SOW, indicating that a potentially deeper decline may unfold. Levels to be mindful of for potential renewed buy response are: 2105.00 – 2103.50 Central Pivot Zone, followed by 2100 Roundie.
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