Markets

U.S. futures are pointing lower, as global stocks extend losses and Chinese shares entered a bear market after plunging 3.6% (see below). Investors are also poised to get more insight into how the U.S. economy and corporate America are doing today, with reports on consumer sentiment, retail sales and manufacturing, and several big financial names – Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), U.S. Bancorp (NYSE:USB), BlackRock (NYSE:BLK) and PNC Financial (NYSE:PNC) – releasing quarterly earnings.

In Asia, Japan -0.5% to 17147. Hong Kong -1.5% to 19521. China -3.6% to 2900. India -1.3% to 24455.
In Europe, at midday, London -1.5%. Paris -1.6%. Frankfurt -1.3%.
Futures at 6:20, Dow -1.5%. S&P -1.6%. Nasdaq -1.8%. Crude -5.3% to $29.54. Gold +0.6% to $1080.10.
Ten-year Treasury Yield -4 bps to 2.05%

(Source: Seeking Alpha)

Today’s Economic Calendar

8:30 Producer Price Index
8:30 Retail Sales
8:30 Empire State Mfg Survey
9:15 Industrial Production
10:00 Business Inventories
10:00 Reuters/UofM Consumer Sentiment
1:00 PM Baker-Hughes Rig Count

(Source: Seeking Alpha)

PTG Trading

S&P e-mini (ES) rallied yesterday to just come within a whisker (2 tics) of the 3 Day Cycle Rally Target of 1928.00 projected in prior DTS Report 1.14.16…actual HOD 1927.50.

Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Having reached prior cycle target level, Bulls have exhausted most of their buying power. Volatility remains elevated as 3 Day Average True Range expanded further, currently at 52.08 handles. Options expire today so anticipation is for continued wide range intra-day swings.

HOD Range Projection = 1928.25; LOD Range Projection = 1868.92; Average Cycle Range Decline Target = 1859.34; CD1 Max Violation Extreme Low = 1850.31; CD1 Max Penetration Extreme High = 1936.80

**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

Today’s Hypotheses: March 2016 (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 1881.00 SPOT, THEN initial upside objective is 3D CPZ between 1903.50 – 1908.50. Strength above this zone targets 1928.25.

Scenario 2: Violation of 1881.00 SPOT targets PL (1871.00) retest. Conversion of this level expands range lower targeting 1968.92; 1859.34; 1850.31 extreme low.

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

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