Markets
With voters set to choose a new president and Congress in five days, the Fed will likely keep a low profile when it winds down its two-day meeting today amid a tumultuous U.S. election campaign. While no action is expected, investors will be looking for how strongly a possible December move is communicated in the Fed’s official statement, as Chairwoman Janet Yellen isn’t scheduled to hold a press conference.
In Asia, Japan -1.8% to 17134. Hong Kong -1.5% to 22810. China -0.6% to 3102. India -1.3% to 27527.
In Europe, at midday, London -0.4%. Paris -0.8%. Frankfurt -0.9%.
Futures at 6:20, Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude -1.6% to $45.93. Gold +0.7% to $1297.50.
Ten-year Treasury Yield -2 bps to 1.79%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Gallup U.S. Job Creation Index
8:30 Treasury Refunding Quarterly Announcement
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
PTG Trading
Price failed to clear above CD2 high and with violation/conversion of 2115 handle to lower resistance opened door for decline. We wrote in prior DTS Briefing 11.1.16 “Scenario 2: Violation and conversion of PL (2114.75) to lower resistance opens door for deeper decline targeting 2105 – 2103 zone, with deep extreme measuring 2097 handle.”
Today begins a new Cycle Day 1 (CD1)…With prior session decline the current low (2091.00) may be in place for this cycle. Overnight trade successfully tested 2095 – 2097 zone and as such rebound rally has begun. Price will need to hold this zone as support on any additional retest during cash session. Initial upside objective measures 2105 – 2110 zone.
Range Projections and Key Levels
HOD Range Projection: 2110.50; LOD Range Projection: 2088.50; Cycle Day 1 Low: 2112.50; 3 Day Central Pivot: 2118.00; 3 Day Cycle Target: 2133.50; 10 Day Average True Range: 15.98
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) 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 support at or above 2095 THEN initial upside objective is 2105, followed by 2110 Central Pivot Zone. Continued strength above this zone targets 2117 – 2119 3D CPZ.
Scenario 2: Violation and conversion of 2095 handle to lower support potentially forces long margin selling targeting 2088.50 – 2082.50 levels.
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