Markets
Two of today’s key reports – retail sales and the Consumer Price Index – may provide more clues than Janet Yellen about how soon the Fed could raise interest rates. The Chair testifies for a second day, this time before the House Financial Services Committee, following her comments on Tuesday that helped drive stocks to new highs. “Waiting too long for accommodation would be unwise,” she said when pressed on rate hike timing. “I would say every meeting would be live.”
In Asia, Japan +1%. Hong Kong +1.2%. China +0.2%. India -0.7%.
In Europe, at midday, London +0.4%. Paris +0.5%. Frankfurt +0.2%.
Futures at 6:30, Dow +0.1%. S&P -0.1%. Nasdaq flat. Crude -0.5% to $52.93. Gold +0.2% to $1227.30.
Ten-year Treasury Yield +1 bps to 2.48%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
8:30 Consumer Price Index
8:30 Retail Sales
8:30 Empire State Mfg Survey
9:15 Industrial Production
10:00 Atlanta Fed’s Business Inflation Expectations
10:00 Business Inventories
10:00 NAHB Housing Market Index
10:00 Yellen testifies before House Financial Services
10:30 EIA Petroleum Inventories
12:00 PM Fed’s Rosengren speech
12:45 PM Fed’s Harker: Economic Outlook
4:00 PM Treasury International Capital
PTG Trading
Today is Cycle Day 2 (CD2)…S&P e-mini (ES) continued it’s upward trek achieving (2338.00) minimum 3 Day Cycle Target. Normal for CD2 would be for some “back n fill” to consolidate and absorb recent gains. Given that price has not seen any magnitude decline, extreme caution is now warranted at current price levels. First sign of weakness would be a violation and conversion of 2330.00 handle.
Range Projections and Key Levels
HOD ATR Range Projection: 2348.05; LOD ATR Range Projection: 2326.20; Cycle Day 1 Low: 2322.17; 3 Day Central Pivot: 2321.50; 3 Day Cycle Target: 2341.48; 10 Day Average True Range: 13.80
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2017 (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 clears and converts PH (2337.75), THEN further upside expansion targets 2342.00, followed by 2346.00 Cycle Penetration Levels.
Scenario 2: IF price fails to convert PH (2337.75) and subsequently violates and converts 2330.00 to lower resistance, THEN downside projects 2326 – 2324 zone, followed by 2321.50 – 2319.75 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
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