U.S. equity futures are suggesting a modestly lower open on Wall Street, with DJIA futures down 44 points, ahead of Powell’s big day on Capitol Hill and his likely defense of central bank independence in response to President Trump’s criticism of Fed policy. Adding to the excitement is the release of minutes from the FOMC’s last rate decision, offering new detail on how officials judged growing risks from trade uncertainty before last month’s G20 summit in Japan.
In Asia, Japan -0.2%. Hong Kong +0.3%. China -0.4%. India -0.5%.
In Europe, at midday, London -0.1%. Paris -0.1%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude +2.4% to $59.20. Gold -0.3% to $1397. Bitcoin +4.8% to $12950.
Ten-year Treasury Yield +4 bps to 2.1%
Source: Seeking Alpha https://seekingalpha.com
10:00Atlanta Fed’s Business Inflation Expectations
10:00Powell testifies before House Financial Services Committee
10:30EIA Petroleum Inventories
1:00 PMResults of $24B, 10-Year Note Auction
1:30 PMFed’s Bullard Speech
2:00 PMFOMC minutes
***PTG Trading Room Chat Log’s Link
Today is Cycle Day 2 (CD2)…Price rallied as expected following decline down to Cycle Low Averages. Today’s expectation is for some ‘back n fill’ consolidation of prior session’s rally. Current “sandbox-range” is marked between 2965 – 2985.
CD2 Range High = 2995.00 CD2 Range Low = 2963.00 CD2 Range Avg = 29.75
Scenario 1: IF Bulls hold bid above 2977, THEN initial upside potential targets 2987 – 2992 zone.
Scenario 2: IF Bears hold offer below 2977, THEN initial downside objective targets 2967 – 2965 zone.
Range Projections and Key Levels (ES) September 2019 (U) Contract
HOD ATR Range Projection: 2992.00; LOD ATR Range Projection: 2965.00; 3 Day Central Pivot: 2983.00; 3 Day Cycle Target: 2992.00; 10 Day Average True Range 21.60: VIX: 14.61
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price rallied fulfilling 3 Day Cycle Target Objectives, following decline down to Cycle Low Averages. Today’s expectation is for some ‘back n fill’ consolidation of prior session’s rally. Support Pivot Zone is marked 7812 – 7815.
CD2 Range High = 7869.00 CD2 Range Low = 7762.00 CD2 Range Avg = 108.00
Scenario 1: IF Bulls hold bid above 7816, THEN initial upside potential targets 7846 – 7858 zone.
Scenario 2: IF Bears hold offer below 7816, THEN initial downside objective targets 7801 – 7787 zone.
Range Projections and Key Levels (NQ) September 2019 (U) Contract
HOD ATR Range Projection: 7893.00; LOD ATR Range Projection: 7787.00; 3 Day Central Pivot: 7828.00; 3 Day Cycle Target: 7869.00; 10 Day Average True Range: 82.22; VIX: 14.61
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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