Markets
China is vowing to contain high corporate debt levels and further cut excess coal and steel capacity, as investors scrutinized inflation data for signs of improved demand in the world’s second-largest economy. The consumer price index for December climbed about 2.1%, on higher pork and fuel prices, while the producer price index jumped 5.5%, the fastest pace since September 2011.
In Asia, Japan -0.8%. Hong Kong +0.8%. China -0.3%. India +0.7%.
In Europe, at midday, London +0.4%. Paris flat. Frankfurt +0.1%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +0.5% to $52.24. Gold -0.1% to $1184.30.
Ten-year Treasury Yield flat at 2.38%
(Source: Seeking Alpha)
Economic Calendar
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:00 Wholesale Trade
1:00 PM Results of $24B, 3-Year Note Auction
PTG Trading
Prior session unfolded as expected; normal Cycle Day 2 with “back n fill” consolidation. The overall lean was negative, which continues during overnight trade.
Today is Cycle Day 3 (CD3)…Price has pulled back to 2260 handle “key support’..Bulls will need to defend, otherwise further weakness may unfold. Bullish conversion back above 2271 is required to re-shift back to upside swing.
Range Projections and Key Levels
HOD ATR Range Projection: 2274.38; LOD ATR Range Projection: 2251.63; Cycle Day 1 Low: 2258.25; 3 Day Central Pivot: 2266.00; 3 Day Cycle Target: 2281.63; 10 Day Average True Range: 14.88
**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 can hold above 2260 handle during cash session, THEN primary objective for bulls is to convert 2171 handle to upper support. Upside targets range from 2274 – 2277 HOD Range Projection.
Scenario 2: Violation and conversion of 2260 -ss58 zone to lower resistance is needed for the bears to force some long liquidation. IF this occurs, THEN downside targets 2252 2248 STATX Zone.
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.
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