Markets
The BoE is widely expected to keep interest rates steady today, but could signal a need for a further cut in November when it provides an updated outlook for inflation. The central bank slashed its benchmark rate last month to 0.25%, the lowest level in its 322-year history, and expanded other measures to bolster the U.K. economy amid Brexit fears. Meanwhile, data overnight showed British retail sales remained resilient in August after a bumper July.
In Asia, Japan -1.3% to 16405. Hong Kong +0.6% to 23335. China +0.7% to 3002. India +0.1% to 28412.
In Europe, at midday, London +0.1%. Paris -0.1%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.7% to $43.89. Gold -0.1% to $1324.30.
Ten-year Treasury Yield +1 bps to 1.7%
(Source: Seeking Alpha)
Economic Calendar
8:30 Initial Jobless Claims
8:30 Producer Price Index
8:30 Retail Sales
8:30 Philly Fed Business Outlook
8:30 Empire State Mfg Survey
8:30 Current Account
9:15 Industrial Production
9:45 Bloomberg Consumer Comfort Index
10:00 Business Inventories
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
PTG Trading
Bulls failed to convert 2128 handle to new upper support and as such, selling re-emerged pushing price progressively lower throughout the prior session testing the 2112 handle for support. Trend dynamics favor Bears at this stage unless Bulls can recapture 2128 handle, which has now converted to solid resistance.
Today is Cycle Day 3 (CD3)…Price violated CD1 Low (2112.25) in early overnight trade and has since bounced back to 2120.75 – 2123.25 Central Pivot Zone. We will mark 2124 handle as minor resistance and 2128 as more significant resistance.As long as price stays above CD1 Low (2112.25), it will be a technical positive 3-Day Cycle, albeit with bearish overtones. Bulls will need to defend 2108 – 2112 zone as support, otherwise additional forced margin selling may unfold.
Range Projections and Key Levels
HOD Range Projection: 2130.50; LOD Range Projection: 2100.50; Cycle Day 1 Low: 2112.25; 3 Day Central Pivot: 2128.75; 3 Day Cycle Target: 2136.25; 10 Day Average True Range: 22.73
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) 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 can hold above 2112 handle, initial objective is to push through 2122 – 2124 zone and convert to upper support. Should this occur then second objective is 2128 – 2130 zone.
Scenario 2: Price has violated CD1 Low (2112.25) in overnight trade and has since bounced…Another violation during cash session of 2112 – 2108 zone may produce forced margin selling if Bulls cannot adequately defend. Lower expansion levels to be mindful of are: 2106 down to 2100 handle.
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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