Markets
Long-dated government bond yields are up nicely again today nearly across the board. Leading the way are Spanish 10-years, up 11 basis points to 1.156%. The U.K. 10-year Gilt yield is higher by another 9 basis points to 1.09%. Janet Yellen’s Friday afternoon speech – in which she suggested the Fed might have to tolerate higher-than-otherwise inflation – makes for a good excuse to sell today. U.S. yields rose sharply in the aftermath of her musings, and the 10-year is higher by another basis point this morning to 1.81%. The German 10-year Bund yield is up 3.4 basis points to 0.093%. The Italian 10-year is up 5.8 basis points to 1.439%. The 10-year JGB yield is flat at -0.055%
In Asia, Japan +0.3% to 16900. Hong Kong -0.8% to 23037. China -0.7% to 3041. India -0.6% to 27498.
In Europe, at midday, London -0.9%. Paris -0.6%. Frankfurt -0.7%.
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.4%. Crude -0.3% to $50.19. Gold -0.1% to $1253.80.
Ten-year Treasury Yield Flat at 1.80%
(Source: Seeking Alpha)
Economic Calendar
8:30 Empire State Mfg Survey
9:15 Industrial Production
PTG Trading
Morning Session rally which reached HOD Range Projection (2142.50) by 11 am reversed and closed in the lower quartile of day’s range. The Average Decline of 20.50 handles is already in place which may make for some choppiness today.
Today is Cycle Day 1 (CD1)…Normal is for decline, although the Average Decline on CD1 (20.50) has already been fulfilled at 2122.50, which may make for a choppy and confusing session as traders will be searching for new balance.
Range Projections and Key Levels
HOD Range Projection: 2136.00; LOD Range Projection: 2109.50; Cycle Day 1 Low: 2126.25; 3 Day Central Pivot: 2128.00; 3 Day Cycle Target: 2146.00; 10 Day Average True Range: 19.23
**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: IF price can hold 2118 – 2120 STATX Zone, THEN initial rally projection is 2128 – 2130 3 Day Central Pivot Zone. Above this zone measures 2133.00- 2136.00
Scenario 2: Violation and conversion of 2118 to lower resistance opens door to continued selling targeting 2113.50 – 2109.50 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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