Markets
European shares and U.S. stock futures were lower at the time of writing while Asian shares ended mixed ahead of the opening of the central bankers’ symposium at Jackson Hole today. With nothing much else going on this week market-wise – and with many of their colleagues probably lying on a beach somewhere – traders who are at work have been focusing on what Fed Chair Janet Yellen might say in a speech tomorrow about possible interest-rate rises in the U.S. Macro-strategist Kay Van-Petersen may well be speaking for many, though, in her assertion that “people are reading way, way too much” into the conference.
In Asia, Japan -0.3% to 16556. Hong Kong flat at 22827. China -0.4% to 9761. India -0.8% to 27836.
In Europe, at midday, London -0.3%. Paris -0.7%. Frankfurt -0.9%.
Futures at 6:20, Dow -0.2%. S&P -0.15%. Nasdaq -0.2%. Crude +0.2% to $46.88. Gold -0.2% to $1326.55.
Ten-year Treasury Yield -1 bps to 1.55%.
(Source: Seeking Alpha)
Economic Calendar
Monetary policy symposium
8:30 Durable Goods
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
PTG Trading
“Houston…We have movement”…Finally following near endless days of narrow ranges with anemic volumes, trade activity picked up as sellers appeared in greater quantity following failure to break through the 2191 barrier. Traders used this signal to flood the market with persistent sell orders, finally breaking the multi-day stalemate.
Today is Cycle Day 3 (CD3)…Price is currently below CD1 Low (2179.25)…Odds favor at least getting back to this level during today’s session…Should this occur, then price can go in either direction. Bears will try to repel any rally attempt by bulls…so with range beginning to expand, potential is increased for better trading tone…We Hope!
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2180.50; LOD Range Projection: 2165.00; Cycle Day 1 Low: 2179.25; 3 Day Central Pivot: 2180.75; 3 Day Cycle Target: 2197.00; 10 Day Average True Range: 11.32
**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: Bulls will need to hold off any additional selling above PL (2168.75) and move price back above 2179.25 to notch a Positive 3 Day Rally.
Scenario 2: Bears will work hard to keep any rally attempt in-check below 2179.25 (CD1 Low)…Should they be successful, they want to drill price lower to force weak longs out…Lower targets to be mindful of are: 2167.75 – 2165.50 STATX Zone and 2161.25 CD3 Max Violation Level.
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