Markets
The final big chunk of data this week will come at 8:30 a.m. ET when May’s nonfarm payrolls are released by the Labor Department. U.S. job gains likely remained moderate at 158,000 due to a strike at Verizon (NYSE:VZ), but an anticipated drop in the unemployment rate to 4.9% should indicate underlying labor strength is still intact. A strong figure will further heighten expectations for a June rate hike, which Janet Yellen said last week would be appropriate in the “coming months” if economic conditions were met.
In Asia, Japan +0.5% to 16642. Hong Kong +0.4% to 20947. China +0.5%to 2939. India flat at 26,843 .
In Europe, at midday, London +1%. Paris +0.5%. Frankfurt +0.6%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq -0.1%. Crude flat at $49.17. Gold +0.1% to $1213.70.
Ten-year Treasury Yield -1 bps to 1.80%
(Source: Seeking Alpha)
Economic Calendar
3:45 Fed’s Evans: U.S. Economic and Monetary Policy
8:30 Non-farm payrolls
8:30 International Trade
9:45 PMI Services Index
10:00 Factory Orders
10:00 ISM Non-Manufacturing Index
12:30 PM Fed’s Brainard: U.S. Economic and Monetary Policy
1:00 PM Baker-Hughes Rig Count
PTG Trading
Failure to clear Cycle Day 2 high early is session signaled a sell condition as price traded lower in the morning session, whereby responsive buyers stepped-in to “buy the dip” at 2086 – 88 support zone outlined in prior DTS Briefing 6.2.16.
Strong upside reversal unfolded during afternoon session driving price higher to reach 2103.25 projected STATX Level outlined in Scenario 1 of prior report.
Today is Cycle Day 1 (CD1)…Normal is for some type of decline to unfold, though current upside price momentum may continue to push higher before the next decline begins. Also, Non-Farm Payroll Report could be a “wild-card” for direction.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2116.50; LOD Range Projection: 2090.00; CD1 Max Penetration Level: 2113.50; CD1 Max Violation Level: 2074.25; Cycle Day 1 Low: 2086.00; 3 Day Central Pivot: 2095.25; 3 Day Cycle Target: 2110.00; 10 Day Average True Range: 14.90
**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 closed near HOD (2104.25)…IF cleared and converted, THEN further upside projects 2107.25 – 2109.25 STATX Zone. Average 3 Day Cycle Target remains open at 2110.00…with extremes 2113.50 – 2116.50 respectively.
Scenario 2: Initial sign of weakness would be failure to hold bid above 2098.25 Central Pivot. Layered downside levels include: 2096.75 – 2095.25 3 Day Central Pivot Zone, followed by 2093.75. ATR Range Projection measures 2090.00.
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.
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