U.S. stocks wavered between slight gains and losses overnight as traders continue to assess whether the two major themes dominating sentiment all year – the U.S.-China trade war and Brexit – will turn out all right. Early indications also suggest S&P 500 companies might avoid a first annual aggregate profits contraction since 2016, for the third quarter in a row. What’s going on in the bond market? 10-year Treasury yields are at their highest level in almost a month as the yield curve between three months and 10 years moves further back into positive territory.
In Asia, Japan closed. Hong Kong +0.2%. China +0.5%. India -0.9%.
In Europe, at midday, London +0.4%. Paris flat. Frankfurt +0.2%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.1%. Crude +0.5% to $53.77. Gold +0.2% to $1490.70. Bitcoin +0.4% to $8260.
Ten-year Treasury Yield -1 bps to 1.78%
Source: Seeking Alpha https://seekingalpha.com/
10:00Existing Home Sales
10:00Richmond Fed Mfg.
1:00 PMFed’s Kaplan Speech
1:00 PMResults of $40B, 2-Year Note Auction
***New: PTG Trading Room Chat Log’s Link
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2960.00. Average Range for CD1 is 43.50 handles. Odds of decline > 10 handles = 73% Odds of decline > 20 = 44%
CD1 Range High = 3044.00 CD1 Range Low = 2971.00 CD1 Range Avg = 43.50
Scenario 1: IF Bulls hold bid above 3006, THEN initial upside targets 3016 – 3021 CD1 Penetration Zone.
Scenario 2: IF Bears hold offer below 3006, THEN initial downside targets 2996 – 2993 3 Day Central Pivot Zone.
Range Projections and Key Levels (ES) December 2019 (Z) Contract
HOD ATR Range Projection: 3028.00; LOD ATR Range Projection: 2987.00; 3 Day Central Pivot: 2995.00; 3 Day Cycle Target: 3055.00; 10 Day Average True Range 27.00; VIX: 14.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 7800.00. Average Range for CD1 is 134.25 handles. Odds of decline > 20 handles = 75% Odds of decline > 25 = 67%
CD1 Range High =8057.00 CD1 Range Low = 7858.00 CD1 Range Avg = 134.25
Scenario 1: IF Bulls hold bid above 7945, THEN initial upside targets 7974 – 8008 CD1 Penetration Zone.
Scenario 2: IF Bears hold offer below 7945, THEN initial downside targets 7926 – 7921 3 Day Central Pivot Zone.
Range Projections and Key Levels (NQ) December 2019 (Z) Contract
HOD ATR Range Projection: 8030.50; LOD ATR Range Projection: 7884.00; 3 Day Central Pivot: 7926.00; 3 Day Cycle Target: 8106.00; 10 Day Average True Range: 95.00 VIX: 14.00
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.”
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