Markets
Banking on a recovery in crude prices, General Electric (NYSE:GE) is merging its oil and gas business with Baker Hughes (NYSE:BHI), creating a large, listed player, that could compete with rivals like Schlumberger (NYSE:SLB). GE will own 62.5% of the new company, which will have combined revenue of $32B, while Baker Hughes shareholders will own 37.5% and get a special one-time cash dividend of $17.50 per share after the deal closes (expected in mid-2017). GE +1%; BHI +9.1% premarket.
In Asia, Japan -0.1% to 17425. Hong Kong -0.1% to 22934. China -0.1% to 3100. India flat at 27930.
In Europe, at midday, London -0.5%. Paris -0.7%. Frankfurt -0.4%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.3%. Crude -0.5% to $48.47. Gold -0.2% to $1274.80.
Ten-year Treasury Yield flat at 1.84%
(Source: Seeking Alpha)
Economic Calendar
8:30 Personal Income and Outlays
9:45 Chicago PMI
10:30 Dallas Fed Manufacturing Survey
3:00 Farm Prices
PTG Trading
Prior session was Cycle Day 1 (CD1) and with the decline in place the rebound rally which we anticipated, unfolded, reaching upside “layered” targets between 2130 – 2136. Actual high of day was 2135.25. News release of FBI reopening e-mails investigation sent markets in a tailspin within seconds…Fortunately PTG Traders were not caught on wrong side of that action.
Today is Cycle Day 2 (CD2)…Markets have recovered a bit reaching 2130.00 HOD ATR Range Level. Expectation today would be for some back n fill type trade within a larger downtrend context. It would take a price shift above 2136 handle to change the current trend dynamics.
Range Projections and Key Levels
HOD Range Projection: 2129.50; LOD Range Projection: 2115.75; Cycle Day 1 Low: 2112.50; 3 Day Central Pivot: 2129.50; 3 Day Cycle Target: 2130.00; 10 Day Average True Range: 14.77
**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 above 2123 handle, THEN initial upside is 2130 confluence level, followed by 2135.25 – 2137.75 STATX Zone.
Scenario 2: Violation and conversion of 2123 handle to lower resistance opens door for a retest of CD1 Low (2112.50). Below this level potentially forces long liquidation targeting 2101 CD2 Maximum Violation Level.
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