In Europe, at midday, London -0.4%. Paris -0.5%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.2%. Crude -1.1% to $33.24. Gold +0.6% to $1123.10.
Ten-year Treasury Yield flat at 1.93%
8:30 Personal Income and Outlays
8:30 Gallup US Consumer Spending Measure
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
PTG Trading
S&P e-mini vaulted higher on Friday to close January on a strong note, with more than $4B Market on Close Buy Imbalance. But is that enough to turn the overall negative sentiment around? We are not so sure…One thing that we do know is that volatility remains high, 10 Day Average True Range sitting at 38.42 handles.
Today is Cycle Day 3 (CD3)…NEUTRAL DOWN…Cycle Targets have been exceeded and maximum penetration levels achieved…So the next cycle decline can begin at anytime.
Range Projections and Key Levels:
HOD Range Projection = 1952.50; LOD Range Projection = 1894.00; Daily Pivot = 1913.50; 3 Day Central Pivot = 1893.75; Upper STATX Zone = 1941.75 – 1948.50; Lower STATX Zone = 1885.25 – 1876.50
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2016 (H) 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 1913.50 on pullbacks, THEN initial upside objective is 1922.25…Above this level targets 1926.50, then 1929.75…1932.50.
Scenario 2: Violation and conversion of 1913.50 targets 1904.75 followed by 1900.00 Roundie..then 1895.50 – 1892.00 3 Day Central Pivot Zone.
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