Markets
Six more weeks without a rate hike? The Fed kept interest rates on hold at its January policy meeting, its first since Donald Trump assumed the presidency, but said “measures of consumer and business sentiment have improved of late.” The FOMC’s next policy meeting will take place on March 14-15. Meanwhile, the market is now trapped in another rate decision session, this time at the Bank of England, which will release its policy statement, minutes and inflation report.
In Asia, Japan -1.2%. Hong Kong -0.6%. China closed. India +0.3%.
In Europe, at midday, London +0.2%. Paris +0.1%. Frankfurt -0.2%.
Futures at 6:20, Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude +0.5% to $54.16. Gold +.3% to $1224.40.
Ten-year Treasury Yield -1 bps to 2.46%
(Source: Seeking Alpha)
Economic Calendar
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
8:30 Gallup Good Jobs Rate
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
4:30 Money Supply
4:30 Fed Balance Sheet
PTG Trading
The early rally faded just shy of reaching 2287 objective by 2 handles (HOD 2285). This keeps current downswing intact and bulls on the defensive with critical support at 2262 – 2264 zone. Should bulls fail to hold support the larger pattern suggests lower target zones 2247 – 2245 followed by 2238 – 2236 symmetry levels. Bulls will need to convert 2285 handle to upside support in order to reverse the current pattern.
Today is Cycle Day 2 (CD2)…Bulls will need to hold price above 2262 – 64 critical pivot support zone and push for conversion of 2276 handle.
Range Projections and Key Levels
HOD ATR Range Projection: 2280.25; LOD ATR Range Projection: 2259.50; Cycle Day 1 Low: 2268.25; 3 Day Central Pivot: 2274.50; 3 Day Cycle Target: 2292.58; 10 Day Average True Range: 15.75
**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 bulls hold 2262 – 64 zone as support, THEN first objective will be to clear and convert 2276 to upper support. IF successful, THEN secondary objective will be to push for 2284.50 – 2286.25 STATX Zone.
Scenario 2: Bears need to kill and convert 2262 – 64 zone to lower resistance. IF successful, THEN they can force long s to liquidate targeting 2254.75 – 2249 STATX 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.
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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