Markets
With financials priding itself as the only positive sector so far this month, will upcoming bank earnings hurt or help? Wells Fargo (NYSE:WFC), Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) all report results ahead of the opening bell and are viewed as an important read on the economy and harbingers for earnings season. Expectations for the third quarter are low, however, as slowing loan growth and subdued interest rates put pressure on profits.
In Asia, Japan +0.5% to 16856. Hong Kong +0.9% to 23233. China +0.1% to 3063. India +0.1% to 27673.
In Europe, at midday, London +0.9%. Paris +2%. Frankfurt +1.8%.
Futures at 6:20, Dow +0.5%. S&P +0.5%. Nasdaq +0.4%. Crude +1.2% to $51.03. Gold -0.3% to $1254.
Ten-year Treasury Yield +3 bps to 1.77%
(Source: Seeking Alpha)
Economic Calendar
8:30 Producer Price Index
8:30 Retail Sales
8:30 Fed’s Rosengren: “The Elusive Recovery”
10:00 Business Inventories
10:00 Consumer Sentiment
12:30 PM Janet Yellen speech
1:00 PM Baker-Hughes Rig Count
2:00 PM Treasury Budget
PTG Trading
Early margin call selling pushed price down to the lower edge (2108.25) of Statistical Extreme Zone (STATX), where buyers stepped in to absorb the selling. With the “secure cycle low” in place, bulls “ramped-it-up” hard reversing the morning weakness into afternoon strength closing near session highs.
Today is Cycle Day 3 (CD3)…Price held early pullback to 2122.00 Central Pivot in overnight trade and has pushed higher to reach 2137.25 CD3 Maximum Penetration Level and STATX Zone. This Cycle is complete as price is now safely above the CD1 Low (2126.25) fulfilling Positive 3 Day Cycle Rally. Price will need to convert 2138 handle to upper support to continue the rally targeting 2142 – 2146 zone.
Range Projections and Key Levels
HOD Range Projection: 2142.50; LOD Range Projection: 2118.75; Cycle Day 1 Low: 2126.25; 3 Day Central Pivot: 2130.75; 3 Day Cycle Target: 2146.00; 10 Day Average True Range: 20.05
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) 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: Price has held pullback to 2122.00 CPZ support and rallied to reach 2137.00 CD3 Penetration Target. Further strength above this level targets 2142 – 2146 zone.
Scenario 2: First sign of structural weakness would be a violation and conversion of 2122 handle to lower resistance. IF this occurs, THEN lower target measures 2118 – 2112 zone.
*****Potential for Margin Call Selling if price cannot stabilize and recoup some of prior session’s losses.
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