In Europe, at midday, London +0.2%. Paris +0.2%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.4%. S&P +0.2%. Nasdaq +0.2%. Crude -0.8% to $51.08. Gold -0.6% to $1282.20.
Ten-year Treasury Yield +4 bps to 2.36%
1:00 PM Baker-Hughes Rig Count
2:00 PM Treasury Budget
12:30 PM Janet Yellen: “The Future of Global Finance: Populism, Technology and Regulation” speech
We asked the question in prior DTS Briefing 10.19.17 “Lower Cycle Targets have been fulfilled overnight, so it will be of utmost importance as to how the RTH Session handles the break. Will it be BTFD or STFB?”
BTFD = “Buy The “effing” Dip” STFB = “Sell The “effing” Bounce”
Verdict is in…It was clearly BTFD! This keeps the rally intact with expectation of higher levels over the comings days. Options Expiration is on tap for Friday, so both directions may be in-play for today’s session.
Friday is Cycle Day 1 (CD1)…Normal is for some magnitude decline with average measuring 2547 handle. Early sign of weakness would be violation and conversion of 2558 handle, followed by break of 2556.75 – 54 3 Day Central Pivot Zone.
STAY NIMBLE and ALWAYS USE PROTECTIVE STOPS.
Range Projections and Key Levels (ES)
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December 2017 (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 clears and converts PH (2561.50), THEN upside targets measures 2570.25, followed by 2573 cycle range high.
Scenario 2: IF price violates and converts 2558 to lower resistance, THEN downside targets 2554 VPOC, followed by 2547 CD1 average decline.
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!
“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.
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