Markets
The pound has taken a plunge amid a split in the U.K.’s ruling political party over whether Britain should leave the European Union. Over the weekend, British PM David Cameron announced a historic referendum (set for June 23) to decide whether the U.K. should remain in the bloc, after finalizing a deal with EU leaders to reset Britain’s relationship. Almost half of the bosses of the FTSE 100 agree with Cameron’s ‘stay’ campaign, but he lost the backing of London Mayor Boris Johnson, who just became the most high profile supporter of a British exit. Sterling -2% to $1.4121.
In Asia, Japan +0.9% to 16111. Hong Kong +0.9% to 19464. China +2.4% to 2927. India +0.3% to 23789.
In Europe, at midday, London +1.3%. Paris +1.7%. Frankfurt +2%.
Futures at 6:20, Dow +1.2%. S&P +1.2%. Nasdaq +1.3%. Crude +3.5% to $30.67. Gold -2.2% to $1204.20.
Ten-year Treasury Yield +3 bps to 1.78%
(Source: Seeking Alpha)
8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash
PTG Trading
Friday’s Cycle Day 2 “Lean Down” worked as planned with price finding support at 1900 Strike Price early in session. Relatively quiet trading day with range contraction. Overnight trade has price higher 30.50 handles reaching 1936.23 Cycle Day 3 Maximum Penetration Level.
Today is Cycle Day 3 (CD3)…SPILL UP…Overall trends remain in a bullish configuration. Violation and conversion of 1900 would be first sign of weakness..Upside test of 1940 is on tap for today’s trade action.
Range Projections and Key Levels:
HOD Range Projection = 1940.08; LOD Range Projection = 1906.92; CD3 Maximum Penetration Level = 1936.23; CD3 Maximum Violation Level = 1884.53; Cycle Day 1 Low = 1911.25; 3 Day Central Pivot = 1915.00; 3 Day Cycle Target = 1949.00; 10 Day Average True Range = 31.83.
**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 PH (1922.75), THEN initial upside objective is 1936.23, followed by 1940.08 with 1949.00 3 Day Cycle Rally Target as max objective.
Scenario 2: Price is currently above PH (1922.75)…Move back down below this level constitutes a price reversal targeting 1917.50 – 1912.50 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