Markets
S&P 500 has fallen in seven straight sessions through Wednesday, the first time the large-cap index has done that since 2011. Yet even amid all of the declines, the S&P has fallen less than 2.5% in the past seven sessions. To put that into context, the market has suffered a greater percentage drop on two separate days this year. With election day almost here, will Mr. Market finally snap out of his mood?
Although many traders are anticipating a rate hike before the end of the year, the Fed on Wednesday held interest rates steady again, while continuing to acknowledge that the case for a move is getting stronger. FOMC officials, however, made no direct nod to a coming rate increase at the December meeting, a move that the market is strongly anticipating. The Fed also adjusted its rhetoric – no longer predicting low near-term inflation.
In Asia, Japan -1.8% to 17134. Hong Kong -0.6% to 22683. China +0.8% to 3128. India -0.4% to 27430.
In Europe, at midday, London -0.6%. Paris +0.6%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P flat. Nasdaq -0.3%. Crude +0.7% to $45.67. Gold -1.1% to $1294.10.
Ten-year Treasury Yield flat at 1.8%
(Source: Seeking Alpha)
Economic Calendar
Chain Store Sales
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
8:30 Gallup Good Jobs Rate
9:45 PMI Services Index
9:45 Bloomberg Consumer Comfort Index
10:00 Factory Orders
10:00 ISM Non-Manufacturing Index
10:30 EIA Natural Gas Inventory
4:30 Money Supply
PTG Trading
Early rally attempt faded ate key resistance zone outlined in DTS Briefing 11.2.16. Orderly selling pressure was the theme throughout Cycle Day 1.
Today is Cycle Day 2 (CD2)…Price pushed a bit lower during overnight trade obly to snap back above CD1 Low (2087.25) with a rebound rally of +10 handles. Initial upside targets 2107 – 210 zone.
Range Projections and Key Levels
HOD Range Projection: 2101.00; LOD Range Projection: 2082.00; Cycle Day 1 Low: 2087.25; 3 Day Central Pivot: 2108.50; 3 Day Cycle Target: 2104.50; 10 Day Average True Range: 16.88
**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 holds above CD1 Low (2087.25), THEN primary objective is to rally to 2097 handle. Conversion of this level to new support targets 2107 – 2110.00 3 Day Central Pivot Zone.
Scenario 2: Violation and conversion of CD1 Low (2087.25) to lower resistance forces margin selling with lower tragets measuring 2082 handle with extreme low 2075 CD2 Max 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