Futures suggest equities are looking to extend a record rally at the open following the U.S. jobs report on Friday which smashed expectations and underpinned risk assets. A weekend agreement by OPEC+ to an extension of output cuts saw oil climb to over $40 overnight, while investors get ready for Tuesday’s kickoff of the Fed’s June policy meeting.
The finalized pact calls for collective cuts of 9.6M daily barrels until the end of next month, with Nigeria and Iraq making up for their backlog of reductions with deeper cuts over the next three months. Mexico won’t pursue curbs beyond June, as it aims to implement longstanding plans to revive its oil industry. The cuts will be reviewed on a monthly basis, with the next meeting set for June 18. OPEC+ compliance with the May deal was 89%, meaning the group fell some 1.1M barrels short of the target set in the April agreement, according to commodities data firm Kpler.
12:30 PM TD Ameritrade IMX
1:00 PM Results of $44B, 3-Year Note Auction
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Friday’s Session was Cycle Day 2 (CD2): Trend Up Day capped a bullish week fulfilling Cycle Targets. Current price momentum has potential to retest all-time highs in the coming days. NAZ (NQ) has already achieved this milestone.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Having closed near session highs and having fulfilled 3 Day Cycle Objectives, we then have Two Scenarios to consider.
- Price continues higher targeting 3210 – 3214 zone.
- Price fails to sustain bid above CD2 High (3210.50) converting and reverting back into prior range targeting 3195 – 3190 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3205 PVA Low Edge = 3192 Prior POC = 3200
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 3247; LOD ATR Range Projection: 3147; 3 Day Central Pivot: 3128; 3 Day Cycle Target: 3214; 10 Day Average True Range 55; VIX: 25.00
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has fulfilled Positive 3 Day Cycle Statistic and achieved milestone of notching new All-Time High during previous weeks trading.
PVA High Edge = 9845 PVA Low Edge = 9721 Prior POC = 9822
Bull Scenario: IF Bulls hold bid above 9822, THEN initial upside estimate targets 9853 – 9867 zone.
Bear Scenario: IF Bears hold offer below 9822, THEN initial downside estimate targets 9780 – 9760 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9955; LOD ATR Range Projection: 9717; 3 Day Central Pivot: 9698; 3 Day Cycle Target: 9867; 10 Day Average True Range: 169; VIX: 25.00
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!
“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.”
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