Markets
Global markets are slightly higher in a week largely dominated by the upcoming Federal Reserve meeting in Jackson Hole, Wyoming. A speech on Friday by Fed Chair Janet Yellen could settle the matter on if a September rate hike should be priced in. South Korea, Australia and the main China index showed gains, while the Nikkei 225 fell slightly after Japanese flash PMI for August came in weak at 49.6. European markets are in positive territory after August PMI readings didn’t show significant Brexit blowback, with the Euro Stoxx 50 up 0.84% in midday trading.
Oil prices are lower again as the market digests reports indicating that Iraq is preparing to ramp up its export levels. Iraq oil production rose sharply in July to hit 3.71M barrels a day. Strong oil output out of China and a new ceasefire with militants in Nigeria are also being eyed by traders. WTI crude oil futures -0.80% to $47.03/bbl. Brent crude -1.14% to $48.60/bbl
In Asia, Japan -0.61% to 16497. Hong Kong +0.2% to 22998. China +0.2% to 3090. India -0.01% to 27972 .
In Europe, at midday, London +0.61%. Paris +0.70%. Frankfurt +0.90%.
Futures at 6:20, Dow +0.3%. S&P +0.2%. Nasdaq +0.3%. Crude -0.80% to $47.03. Gold -0.01% to $1343.30.
Ten-year Treasury Yield flat at 1.56%
(Source: Seeking Alpha)
Economic Calendar
8:55 Redbook Chain Store Sales
10:00 New Home Sales
10:00 Richmond Fed Mfg.
1:00 PM Results of $26B, 2-Year Note Auction
PTG Trading
S&P e-mini (ES) traded in an eleven handle range which matches the 10 Day Average True Range. Intra-Session volatility was actually high as there were a few algorithmic price spikes in both directions as traders/investors battle for ultimate control. At session close, price held key support at 2176 handle. In overnight trade price is attempting to clear the all important 2186 handle we have outlined recently. Range projections are outlined in next section below.
Today is Cycle Day 1 (CD1)…Norm is for some type of decline…Recent declines on CD1 have been shallow and is a testament of bullish sentiment.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2190.00; LOD Range Projection: 2177.00; Cycle Day 1 Low: 2176.25; 3 Day Central Pivot: 2180.25; 3 Day Cycle Target: 2197.00; 10 Day Average True Range: 10.82
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) 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 2186 handle, THEN upside is open to reach 2190 HOD Range Projection, followed by 2194 – 2197 Cycle Penetration and 3D targets.
Scenario 2: Initial sign of weakness would be a conversion of 2176 handle to lower resistance. Should this unfold downside break could carry price to 2166 – 2162 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