Markets
Asia markets traded higher on the first day of the new quarter, tracking global stocks’ third day of recovery despite a slew of downbeat manufacturing data. The Nikkei Japan Manufacturing PMI came in at 48.1 in June, marking the fourth straight month of contraction. Twin surveys from China also showed its factory sector still in a rut, with the government’s official PMI easing to 50.0 and Caixin’s figure dropping to 48.6.
In Asia, Japan +0.7% to 15682. Hong Kong closed. China +0.1% to 2932. India +0.5% to 27142.
In Europe, at midday, London +0.6%. Paris +0.3%. Frankfurt +0.4%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.2%. Crude -0.4% to $48.14. Gold +1.1% to $1335.60.
Ten-year Treasury Yield -8 bps to 1.41%
(Source: Seeking Alpha)
Economic Calendar
Auto Sales
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
11:00 Fed’s Mester: Economic Outlook and Monetary Policy
1:00 PM Baker-Hughes Rig Count
PTG Trading
Markets continued rallying following a short respite to finally reach 2090, which was HOD Range Projection outlined in prior DTS Report 6.30.16. Overnight trade is relative light with narrow range as price holds above 2082.00 minor support.
Today is Cycle Day 3 (CD3)…This Cycle’s Rally is in-place…Further upside potential exists, though the long 4th of July Holiday weekend may dampen further trade, as volume is expected to drop off, as traders will be taking off to get a jump on holiday festivities.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2115.00; LOD Range Projection: 2055.50; CD3 Max Penetration Level: 2102.50; CD3 Max Violation Level: 2050.00; Cycle Day 1 Low: 2022.75; 3 Day Central Pivot: 2049.50; 3 Day Cycle Target: 2041.00; 10 Day Average True Range: 33.42
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) 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 upside targets 2095.50 – 2102.50 STATX Zone / CD3 Max Penetration Level. HOD Range Projection measures 2115.00.
Scenario 2: Initial weakness would be failure to convert PH (2091.25), then violation of 2082.00 minor support. Weakness below 2074.00 SPOT gives Bears an opening to press lower. Key Support Marker is 2056 .00 – 2049.50 3 Day Central Pivot 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