Markets
The highly anticipated Brexit referendum is underway in Britain, where citizens across the country are casting their vote on whether to ‘Remain’ or ‘Leave’ the EU. Despite most polls suggesting the outcome is too close to call, equities are soaring and sterling is at fresh 2016 highs. Traders across London are still bracing themselves for an all-night vigil, while the G7 nations are poised to take “all necessary steps” to calm markets in case of a Brexit.
In Asia, Japan +1.1% to 16238. Hong Kong +0.4% to 20868. China +0.5% to 2892. India +0.9% to 27002.
In Europe, at midday, London +1.5%. Paris +2.2%. Frankfurt +2.3%.
Futures at 6:20, Dow +1%. S&P +1.1%. Nasdaq +1.2%. Crude +1.6% to $49.91. Gold -0.6% to $1263.
Ten-year Treasury Yield +5 bps to 1.73
(Source: Seeking Alpha)
Economic Calendar
8:30 Initial Jobless Claims
8:30 Chicago Fed National Activity Index
9:45 PMI Manufacturing Index Flash
9:45 Bloomberg Consumer Comfort Index
10:00 New Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
PTG Trading
Markets have been jittery ahead of today’s referendum vote…visualize a Cat on a Hot Tin Roof..and you get the idea. Overall though, there continues to be an upside bias to price action, as Monday’s gap low (2070.25) continues to attract responsive buyers with progressively higher lows.
Today is Cycle Day 3 (CD3)…In overnight trade price has rallied higher to reach 3 Day Average Cycle Target at 2100.25…This has produced a Positive 3 Day Rally and as such, price could continue to move with inertial momentum higher, or the next Cycle decline may begin. Just like the Brexit vote today…Too Close to Call. Stay Alert and Flexible.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2104.50; LOD Range Projection: 2082.00; CD3 Max Penetration Level: 2101.50; CD3 Max Violation Level: 2062.50; Cycle Day 1 Low: 2074.00; 3 Day Central Pivot: 2081.00; 3 Day Cycle Target: 2100.25; 10 Day Average True Range: 20.10
**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 clears and converts PH (2091.25), THEN initial upside objective measures 2100.25 – 2101.50 (achieved in overnight trade). Above this zone targets 2104.50 — 2107.25 HOD ATR Range Projection and STATX Zone.
Scenario 2: Price is currently trading above PH (2191.25)…Violation and conversion of this level to resistance opens door for sellers to exit longs and shorts to press positions. Lower levels of interest are: 2083.50 – 2082.00 – 2080.00…Cycle Day 1 Low support at 2074.00.
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