Markets
U.S. stock index futures are on course to climb 0.5% at the open after the DJIA, S&P 500 and Nasdaq closed the session on Monday back where they started. Bond yields are edging higher, with the 10-year Treasury note up 3 bps to 2.45%, easing the market’s worries about an inverted yield curve and looming recession. The next signals investors will be looking to is a full day of Fedspeak, with speeches ahead from Fed Presidents Charles Evans, Patrick Harker and Mary Daly.
In Asia, Japan +2.2%. Hong Kong +0.2%. China -1.5%. India +1.1%.
In Europe, at midday, London +0.3%. Paris +0.6%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.5%. S&P +0.5%. Nasdaq +0.4%. Crude +1.3% to $59.56. Gold -0.7% to $1313.60. Bitcoin -1.5% to $3909.
Ten-year Treasury Yield +3 bps to 2.45%
Source: Seeking Alpha
Economic Calendar
3:45Fed’s Harker: Economic Outlook
8:00Fed’s Harker: Economic Outlook
8:30Housing Starts
8:55Redbook Chain Store Sales
9:00S&P Corelogic Case-Shiller Home Price Index
9:00FHFA House Price Index
10:00Consumer Confidence
10:00Richmond Fed Mfg.
1:00 PMResults of $40B, 2-Year Note Auction
8:30 PMFed’s Rosengren Speech
***PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 2 (CD2)…Price successfully tested CD1 Low (2789.50) at which time this cycle’s rally began fulfilling minimum 3 Day Cycle Objective (2817.50) in Globex Session. Bulls have control above 2808 prior close with further upside targets measuring 2826 – 2830 zone.
CD2 Range High = 2830.00 CD2 Range Low = 2796.00 CD2 Range Avg = 24.00
Scenario 1: IF Bulls hold bid above 2808.25, THEN initial upside potential targets 2817.50 minimum 3 Day Cycle Target. Conversion of this level to support opens skylight targeting 2826 – 2830 zone.
Scenario 2: IF Bears hold offer below 2808.25 zone, THEN initial downside objective targets 2800 – 2796 CD2 Range Low Zone.
Range Projections and Key Levels (ES) June 2019 (M) Contract
HOD ATR Range Projection: 2838.00; LOD ATR Range Projection: 2796.00; 3 Day Central Pivot: 2826.00; 3 Day Cycle Target: 2817.50; 10 Day Average True Range 32.00; VIX: 15.90
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price successfully tested CD1 Low (7290.00) at which time this cycle’s rally began fulfilling minimum 3 Day Cycle Objective (7358.00) in Globex Session. Bulls have control above 7361.75 prior close with further upside targets measuring 7409.50 – 7412.50 zone.
CD2 Range High = 7409.00 CD2 Range Low = 7332.00 CD2 Range Avg = 56.50
Scenario 1: IF Bulls hold bid above 7361.75, THEN initial upside potential targets 7409.50 – 7412.50 zone.
Scenario 2: IF Bears hold offer below 7361.75, THEN initial downside objective targets 7347.00 – 7332.00 zone.
Range Projections and Key Levels (NQ) June 2019 (M) Contract
HOD ATR Range Projection: 745; LOD ATR Range Projection: 7286.00; 3 Day Central Pivot: 7415.00; 3 Day Cycle Target: 7358.00; 10 Day Average True Range: 102.50; VIX: 15.90
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.
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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