Markets
Fickle financial markets have once again proven how volatile they can be. For nearly an hour on Thursday, stocks were roaring after ECB President Mario Draghi announced a range of better-than-expected stimulus measures, but fell back during his usual press conference, when he indicated that interest rates were unlikely to go any lower. “No matter which side you choose to take a position, you may easily get kicked out on the opposite side,” said Margaret Yang, an analyst at CMC Markets Singapore. Following yesterday’s wild ride, global shares are now heading into the green, while the euro is holding above $1.11.
In Asia, Japan +0.5% to 16939. Hong Kong +1.1% to 20200. China +0.2% to 2810. India +0.4% to 24718.
In Europe, at midday, London +1.6%. Paris +3%. Frankfurt +3%.
Futures at 6:20, Dow +1%. S&P +1.1%. Nasdaq +1.3%. Crude +2.6% to $38.84. Gold -0.7% to $1264.40.
Ten-year Treasury Yield +1 bps to 1.94%
(Source: Seeking Alpha)
8:30 Import/Export Prices
1:00 PM Baker-Hughes Rig Count
PTG Trading
Cycle Day 1 unfolded as a normal spill down session following an early opening bounce that faded quickly. Range limits 2003.75 – 1968.00 also held perfectly as outlined in prior DTS Report 3.10.16. The Key Demand Zone between 1966 – 68 held firm as “secure low”.
Today is Cycle Day 2 (CD2)…NORMAL NEUTRAL…Having found a secure low with a bullish overall structure, price should be able to move to higher ground in coming days. Expectation for today is wide range trade as bulls n bears struggle to dominance.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection = 2002.73; LOD Range Projection = 1977.52; CD2 Maximum Penetration Level = 2009.24; CD2 Maximum Violation Level = 1945.76; Cycle Day 1 Low = 1958.00; 3 Day Central Pivot = 1978.25; 3 Day Cycle Target = 2007.00; 10 Day Average True Range = 24.73.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) 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: Price has rallied higher in overnight trade to reach 2002.73, today’s HOD Range Projection. price will need to clear and convert this level for range expansion targeting 2009.24.
Scenario 2: IF price violates and converts 1978 SPOT, THEN odds favor retesting 1968.00 Key Support. Violation and conversion of this level opens trap door down to 1958 CD1 Low.
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