Markets
The price of crude is now within striking distance of $50 a barrel, putting the commodity nearly 22% above the $39.51 it touched on Aug. 2. Chatter about an OPEC production freeze makes for a good excuse, but Iran’s plans to raise its output back up to pre-sanction levels calls that into question. Also helping the bulls: Hurricane season is on the way and the U.S. National Oceanic and Atmospheric Administration recently boosted its expectations for storm activity
In Asia, Japan +0.4% to 16545. Hong Kong -0.4% to 22937. China +0.1% to 3108. India -0.2% to 28077.
In Europe, at midday, London -0.2%. Paris -0.8%. Frankfurt -0.4%.
Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -0.1% to $48.83. Gold -0.5% to $1350.40.
Ten-year Treasury Yield +1 bps to 1.54%
(Source: Seeking Alpha)
Economic Calendar
1:00 PM Baker-Hughes Rig Count
PTG Trading
S&P 500 e-mini (ES) traded again in a relatively narrow range with a Gaussian Distribution Volume Profile pattern. Trade opportunities were minimal as price oscillated around 3D Central Pivot (2179.00) in a 6.75 cash session range. 10 Day Average True Range is now 11.32 handles. Doesn’t get much narrower than this…
Today is Cycle Day 2 (CD2)…Normal Neutral with upside lean…Options expire today, so that perhaps could have influence on trade activity during morning session…As day wears on trading is expected to become lighter and spotty as traders will head out early to Hamptons for weekend.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2186.50; LOD Range Projection: 2173.00; Cycle Day 1 Low: 2176.25; 3 Day Central Pivot: 2179.00; 3 Day Cycle Target: 2197.00; 10 Day Average True Range: 11.32
**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 clear PH (2184.50) to get some upside breakout to unfold. IF this occurs, THEN objective measures 2193 – 2197 zone.
Scenario 2: Current range is 2176 – 2186…Violation and conversion of 2176 to lower resistance opens door to test 2165 handle, which matches with 2164.50 CD2 Violation Level.
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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