Markets
The Bank of England’s new bond-buying program ran into trouble on its second day of operations, as yield-hungry pension funds and insurers refused offers to sell gilts to the central bank. The BoE said it would make up for the £52M it didn’t buy in the second half of its six-month purchase program, but others feel the auction shortfall underscores problems the bank may hit going forward.
In Asia, Japan -0.2% to 16735. Hong Kong +0.1% to 22492. China -0.2% to 3019. India -1.1% to 27774.
In Europe, at midday, London -0.2%. Paris -0.3%. Frankfurt -0.5%.
Futures at 6:20, Dow flat. S&P +0.1%. Nasdaq +0.1%. Crude -1.4% to $42.19. Gold +0.9% to $1358.90.
Ten-year Treasury Yield flat at 1.53%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
10:00 Job Openings and Labor Turnover Survey
10:30 EIA Petroleum Inventories
1:00 PM Results of $23B, 10-Year Note Auction
2:00 PM Treasury Budget
PTG Trading
Let’s spin the broken record today yet again…Narrow Range (13.88)…Low VIX (11.42)…Sub-Par Volumes…Bulls love this type action as Bears are unable to stage any counter attack to the downside. Dawg Dayz of Summer favor the Bulls.
Today is Cycle Day 1 (CD1)…Normal would be for some type of decline…Three Day Central Pivot Zone remains in a solid uptrend condition, so any pullbacks have been relatively shallow without violation of this trend-up line.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2188.50; LOD Range Projection: 2167.50; Cycle Day 1 Low: 2159.25; 3 Day Central Pivot: 2176.00; 3 Day Cycle Target: 2193.75; 10 Day Average True Range: 13.88
**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: Price will need to convincingly accelerate higher above 2182 handle to reach 2188 – 2194 cycle target zone.
Scenario 2: Conversion of 2176 handle to resistance would be first Sign of Weakness…Expanding range below 2166 handle would confirm a short-term high. Average Decline on CD1 measures 2161.50 for lower objective.
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