Markets
The FOMC is expected to leave borrowing costs unchanged today as it maintains a “patient” monetary policy stance in the midst of a strategy rethink. It’s a tough balancing act for Fed Chairman Jerome Powell, who will want to avoid sounding too dovish, due to the strength of the U.S. economy and the fact financial conditions have improved considerably in the last several months.
In Asia, Japan closed. Hong Kong closed. China closed. India closed.
In Europe, at midday, London -0.2%. Paris closed. Frankfurt closed.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.8%. Crude -0.4% to $63.68. Gold -0.1% to $1284. Bitcoin +2.1% to $5294.
Ten-year Treasury Yield flat at 2.5%
(Source: Seeking Alpha)
Economic Calendar
7:00MBA Mortgage Applications
8:15ADP Jobs Report
8:30Treasury Refunding Quarterly Announcement
9:45PMI Manufacturing Index
10:00ISM Manufacturing Index
10:00Construction Spending
10:30EIA Petroleum Inventories
2:00 PMFOMC Announcement
2:00 PMChairman Press Conference
*****New PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 3 …Price is hold firm bid near settlement (2955) following prior session’s “key reversal” rally. It’s FED Day, so expectation will be for quiet pre-announcement trade with a bullish bias, given state of current uptrend momentum.
CD3 Range High = 2980.00 CD3 Range Low = 2934.00 CD3 Range Avg = 27.50
Scenario 1: IF Bulls hold bid above 2955, THEN initial upside target measures 2965.50 – 2970.50 zone.
Scenario 2: IF Bears hold offer below 2955, THEN initial downside target measures 2943.25 – 2938.75 3 Day Central Pivot Zone.
Range Projections and Key Levels (ES) June (M) Contract
HOD ATR Range Projection: 2971.50; LOD ATR Range Projection: 2942.50; Cycle Day 1 Low: 2937.75; 3 Day Central Pivot: 2941.00; 3 Day Cycle Target: 2965.50; 10 Day Average True Range 18.88; VIX: 12.89
Nasdaq 100 (NQ)
Today is Cycle Day 3…Price is hold firm bid near settlement (7851.50) following prior session’s “key reversal” rally. It’s FED Day, so expectation will be for quiet pre-announcement trade with a bullish bias, given state of current uptrend momentum.
CD3 Range High = 7924.25 CD3 Range Low = 7777.25 CD3 Range Avg = 85.25
Scenario 1: IF Bulls hold bid above 7851.50, THEN initial upside potential targets 7874.00 – 7879 zone, upwards to 7895.50 – 7912.00 range zone.
Scenario 2: IF Bears hold offer below 7851.50, THEN initial downside targets 7825.00 – 7812.00 3 Day Central Pivot Zone.
Range Projections and Key Levels (NQ) June (M) Contract
HOD ATR Range Projection: 7912.00; LOD ATR Range Projection: 7790.00; Cycle Day 1 Low: 7805.50; 3 Day Central Pivot: 7815.50; 3 Day Cycle Target: 7874.00; 10 Day Average True Range: 72.19; VIX: 12.89
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.
Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.
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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