Markets
U.S. shares staged a dramatic comeback yesterday, led by banks and healthcare stocks as investors bet on the prospect of less regulation under a Trump administration, while Treasury yields rose to their highest level since January. The broad move higher in stocks is continuing across the globe today, though the speed of the reversal is leaving some market watchers scratching their heads.
The oil market risks running another surplus in 2017 without an output cut from OPEC, according to the IEA’s monthly oil market report, which warned of “another year of relentless global supply growth similar to that seen in 2016.” Global supply rose by 800K barrels per day in October to 97.8M bpd, led by record OPEC production and rising output from non-OPEC members like Russia, Brazil, Canada and Kazakhstan.
In Asia, Japan +6.7% to 17344. Hong Kong +1.9% to 22839. China +1.4% to 3171. India +1% to 27517.
In Europe, at midday, London +0.6%. Paris +1.1%. Frankfurt +1%.
Futures at 6:20, Dow +0.7%. S&P +0.7%. Nasdaq +0.9%. Crude -0.2% to $45.16. Gold +0.6% to $1280.80.
Ten-year Treasury Yield flat at 2.06%
(Source: Seeking Alpha)
Economic Calendar
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $12B, 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
PTG Trading
Traders that sold during Globex Session on election night have a bad case of “whiplash” and will be wearing neck collars for weeks to come. Having recovered and exceeding pre-election highs, now comes the task of stabilization and finding fair-value balance. This may take several days to ultimately sort out, so until then enjoy the price movement, as this is what we live (trade) for as intra-day traders.
Today is Cycle Day 1 (CD1)…Price has reached (2176.00) CD1 Max Penetration Level and (2180.50) ATR Range Projection. As such, we will mark this zone as initial resistance, with expectation for a normal CD1 decline day. Average True Range (10) has expanded to 25.42.
Range Projections and Key Levels
HOD Range Projection: 2180.50; LOD Range Projection: 2155.00; Cycle Day 1 Low: 2102.75; 3 Day Central Pivot: 2124.25; 3 Day Cycle Target: 2190.00; 10 Day Average True Range: 25.42
**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 reached upper target zone between 2176 – 2180.50 in pre-cash session. IF price clears and converts this zone during cash-session, THEN upside expands to 2187.75 – 2204.00 STATX Zone.
Scenario 2: Having reached upper target zone between 2176 – 2180.50, this is now marked as initial resistance for cash-session. IF price fails to clear above and subsequently violates and converts PH (2166.75) to lower resistance, THEN downside targets 2155.00 LOD Range Projection. Further weakness below this level measures 2144.00 Average Decline on CD1.
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