In Europe, at midday, London -0.2%. Paris -0.4%. Frankfurt -0.6%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -2% to $30.17. Gold flat at $1225.80.
Ten-year Treasury Yield -2 bps to 1.73%
8:00 Fed’s Mester: Economic Outlook
8:30 Consumer Price Index
1:00 PM Baker-Hughes Rig Count
PTG Trading
Prior trade session was textbook Cycle Day 1 (CD1) with anticipated spill down…Failure to expand above prior high, coupled with failure to hold above Open Range Rotation Midpoint (1924.25) was setup for the decline. Projected target of 1912.50 as outlined in prior DTS Report 2.18.16 held perfectly for remainder of session. In overnight trade price had shallow bounce to find resistance at 1921.00, which is today’s Central Pivot.
Today is Cycle Day 2 (CD2)…NEUTRAL DOWN…As price closed weak in it’s prior day’s range, anticipation for today will be for downside lean in search for a new secure low. Key zone is the 3 Day Central Pivot zone between 1908.50 – 1903.00 for renewed buy response.
Range Projections and Key Levels:
HOD Range Projection = 1940.95; LOD Range Projection = 1888.30; CD2 Maximum Penetration Level = 1942.34; CD2 Maximum Violation Level = 1886.28; Cycle Day 1 Low = 1911.25; 3 Day Central Pivot = 1905.75; 3 Day Cycle Target = 1943.65; 10 Day Average True Range = 34.45.
**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 clears and converts 1921.00 Central Pivot, THEN initial objective is to retest PH (1933.50). Above this level targets 1940.95 – 1943.65 Zone.
Scenario 2: Failure to convert 1921.00 Central Pivot and subsequent violation of PL (1911.25) initially targets 1908.50 – 1903.00 3 Day Central Pivot Zone. Failure to find responsive buyers in ample quantity opens door for further decline measuring 1897.00 – 1894.50.
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