Markets
Nothing’s gonna stop us now? The Dow finished with a more than 30-point gain on Thursday, hitting its tenth record closing high in a row and matching the best streak of consecutive records since 1987. Futures are heading lower today, but that could change during the session. Hopes for tax cuts and a rollback on regulations from President Trump are helping fuel the rally, with investors also excited about big federal infrastructure spending.
In Asia, Japan -0.5%. Hong Kong -0.6%. China +0.1%. India closed.
In Europe, at midday, London -0.7%. Paris -1.4%. Frankfurt -1.4%.
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.5%. Crude -0.6% to $54.15. Gold +0.6% to $1258.50.
Ten-year Treasury Yield -2 bps to 2.37%
(Source: Seeking Alpha)
Economic Calendar
10:00 New Home Sales
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
PTG Trading
Markets produced their first lower high in prior session, offering hopeful bears a “risk-marker” from which to establish new short positions. Whether this will be short-lived or not, only time will tell…but for now it’s refreshing to see some dominant selling.
Today is Cycle Day 3 (CD3)…Failure to produce a higher high now sets up a sell condition for the market to test prior lower support pivots. There is now a build-up of sell stops below recent lows and bears are hungry to force weak longs out.
Range Projections and Key Levels
HOD ATR Range Projection: 2363.95; LOD ATR Range Projection: 2349.00; Cycle Day 1 Low: 2355.25; 3 Day Central Pivot: 2359.75; 3 Day Cycle Target: 2378.00; 10 Day Average True Range: 12.70
**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: Bulls will need to hold 2348 – 2350 zone on any pullback and push price back above 2360 handle to keep ball control.
Scenario 2: Bears need to convert 2348 – 50 zone to lower resistance in order to force selling of weak longs. Lower levels of interest are: 2346 – 2342 handles.
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