Markets
Investors are awaiting Janet Yellen’s speech to the Commonwealth Club in San Francisco later today, which could offer clues about the direction of policy. The Fed looks poised to pick up the pace of interest-rate hikes this year, especially if incoming President Donald Trump makes good on his promise to deliver tax cuts and fiscal stimulus that could spur growth.
In Asia, Japan +0.4%. Hong Kong +1.1%. China +0.1%. India +0.1%.
In Europe, at midday, London +0.1%. Paris -0.5%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -1.3% to $52.55. Gold -0.2% to $1211.
Ten-year Treasury Yield +3 bps to 2.36%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
8:30 Consumer Price Index
8:55 Redbook Chain Store Sales
9:15 Industrial Production
10:00 NAHB Housing Market Index
10:00 Fed’s Kashkari speech
2:00 PM Fed’s Beige Book
3:00 PM Janet Yellen speech
4:00 PM Treasury International Capital
PTG Trading
Price successfully tested 2258 “key support” in prior session and has since bounced back to 2265.00 (5 Day POC). Bulls & Bears continue to battle for control as the stalemate continues into Options Expiration. Big SPY Strikes with largest Open Interest are: 225, 226, 227. Direction may be resolved into next week once traders get past this month’s expiration.
Today is Cycle Day 3 (CD3)…Price remains range bound oscillating around 2265 handle which is weekly Point of Control. Bulls need expansion above 2270 and bears need a break below 2250.
Range Projections and Key Levels
HOD ATR Range Projection: 2274.13; LOD ATR Range Projection: 2255.63; Cycle Day 1 Low: 2265.00; 3 Day Central Pivot: 2266.25; 3 Day Cycle Target: 2287.95; 10 Day Average True Range: 12.88
**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 2270 handle, THEN upside expansion initially measure 2275.25 – 2278.75 STATX Zone. Cycle Range measures 2283.55 – 2274.75.
Scenario 2: Bears need to kills 2260 (Strike) to get any lower expansion. IF successful. THEN downside to 2255 – 2250 is open target.
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