Markets
Although “Sell in May” fell short this year with solid gains in the U.S., traders are already looking ahead to see what June will bring for stocks and the markets. They’ll get a head start this week with an economic data deluge ranging from the monthly jobs report to figures on inflation, manufacturing, and the services sector, plus an ECB meeting an OPEC gathering. Janet Yellen’s comments from Friday are also on investors’ minds, which suggested a rate hike could be on the table “in the coming months.”
In Asia, Japan +1% to 17235. Hong Kong +0.9% to 20815. China +3.3% to 2917. India -0.2% to 26668.
In Europe, at midday, London -0.1%. Paris -03%. Frankfurt -0.3%.
Futures at 6:20, Dow +0.2%. S&P +0.1%. Nasdaq +0.2%. Crude +0.3% to $49.46. Gold -0.3% to $1213.70.
Ten-year Treasury Yield +4 bps to 1.87%
(Source: Seeking Alpha)
Economic Calendar
8:30 Personal Income and Outlays
9:00 S&P Case-Shiller Home Price Index
9:45 Chicago PMI
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:30 Dallas Fed Manufacturing Survey
3:00 Farm Prices
PTG Trading
S&P e-mini (ES) fulfilled our upside target expectation over the long holiday break as price achieved 2100 – 2103.25 STATX Zone outlined in prior DTS Briefing 5.27.16. Shortened holiday session Monday with very narrow range has contracted 10 Day Average True Range down to 17.42 from 21.05.
Today begins new Cycle Day 1 (CD1)…Normal expectation would be for some type decline, but as we has recently seen, pullbacks remain relatively shallow as Bulls have dominant control at this time. Rising 3 Day Central Pivots indicate uptrend in effect with Mutual Funds in “buy the dips” mode.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2113.42; LOD Range Projection: 2085.33; CD1 Max Penetration Level: 2112.00; CD1 Max Violation Level: 2087.00; Cycle Day 1 Low: 2082.50; 3 Day Central Pivot: 2095.00; 3 Day Cycle Target: 2107.00; 10 Day Average True Range: 17.42
**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: IF price holds above 2095.00 3D Pivot, THEN initial objective is to convert 2100.00 to upper support. Clearing PH (2103.75) expand recent rally targeting 2107.00 – 2109.50 STATX Zone. Above this zone measures 2112.00 – 2113.42.
Scenario 2: Initial sign of weakness would be violation and conversion of 2095.00 to resistance. Should this occur further downside may unfold in search of renewed buy response. Heavy congestive trade has previously occurred between 2080 – 2090 handles and expectation would be for buyers to step back in within this 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. 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. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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