Markets
Global markets are stable overnight, and the euro, yen and pound all recover a bit of ground against the dollar, as the greenback surged to 14-year highs vs. the euro and a broader basket of currencies yesterday as markets repositioned for a faster pace of Fed rate hikes over the next year.
The yen has plunged 11% vs. the dollar since Pres.-elect Trump’s election victory last month, surpassing the Mexican peso’s 10% slide to become the worst performing major currency during the period. The weaker yen will make Japan’s exports more competitive and could boost growth, and the Nikkei index has gained for eight straight days, but bond prices have been under pressure amid a global debt selloff.
In China, fears that a rising dollar will destabilize trading in the yuan has sent the currency to its lowest against the dollar in more than eight years and raised concerns that outflows could increase.
In Asia, Japan +0.7% to 19401. Hong Kong -0.2% to 22020. China -0.2% to 10,075. India -0.1% to 26,489.In Europe, at midday, London +0.3%. Paris +0.5%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.1%. S&P flat. Nasdaq +0.1%. Crude -0.6% to $51.67. Gold +0.60% to $1136.30.
Ten-year Treasury Yield -2 bps to 2.56%
(Source: Seeking Alpha)
Economic Calendar
8:30 Housing Starts
10:00 Atlanta Fed’s Business Inflation Expectations
12:30 PM Fed’s Lacker speech
1:00 PM Baker-Hughes Rig Count
PTG Trading
Prices held above CD1 Low in prior session and rallied to reach 3 Day Cycle Target of 2266.50. Pullback mid-afternoon held price in check, closing at 2258.50, which was our Key Over/Under for the day.
Today is Cycle Day 3 (CD3)…Quad-Options Expiration may keep a lid on directional move today as “tug-o-war” centered around 2258 handle is expected. Bulls continue to have the edge, so play today tight to the vest.
Range Projections and Key Levels
HOD ATR Range Projection: 2274.80; LOD ATR Range Projection: 2245.45; Cycle Day 1 Low: 2243.00; 3 Day Central Pivot: 2259.50; 3 Day Cycle Target: 2266.50; 10 Day Average True Range: 18.30
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2017 (H) 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 (2267.75, THEN upside targets 2275 – 2299 zone. Possible cycle range high measures 2282.28.
Scenario 2: Violation and conversion of 2256 handle to lower resistance opens door to retest PL (2247.25). Breakdown of this level target 2244 – 2241 zone. Possible cycle range low measures 2238.
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