Markets
U.S. futures are heading higher as traders focus on the upcoming policy announcements from the Federal Reserve and Bank of Japan. While the Fed is widely anticipated to leave interest rates unchanged, expectations for the BOJ are more mixed, with investors split on whether it will cut rates further into negative territory, alter its bond purchase program or signal a shift in monetary policy. Both decisions will come tomorrow.
In Asia, Japan -0.1% to 16492. Hong Kong -0.1% to 23530. China -0.1% to 3023. India -0.4% to 28523.
In Europe, at midday, London +0.4%. Paris +0.6%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.3%. S&P +0.4%. Nasdaq +0.4%. Crude -0.6% to $43.04. Gold flat at $1318.
Ten-year Treasury Yield flat at 1.69%
(Source: Seeking Alpha)
Economic Calendar
FOMC meeting begins
8:30 Housing Starts
8:55 Redbook Chain Store Sales
PTG Trading
Textbook Cycle Day 2 in prior session as price failed to hold bid and retracement selling began pushing lower to test lower pivot zones outline in prior DTS Briefing 9.19.16. Three-Day Central Pivot Zone has shifted back to bullish formation and as such becomes key support on pullbacks…Current 3D CPZ is 2131.25 – 2133.5.
Today is Cycle Day 3 (CD3)…Bulls have momentum heading into Fed Meeting…There remains room to move prices higher targeting 2147…2154- 56 zone.
Range Projections and Key Levels
HOD Range Projection: 2156.50; LOD Range Projection: 2116.25; Cycle Day 1 Low: 2123.00; 3 Day Central Pivot: 2132.25; 3 Day Cycle Target: 2147.00; 10 Day Average True Range: 25.80
**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: Price will need to hold any selling above 2136.00 Central Pivot to keep the current upswing intact. First objective is to clear & convert PH (2146.75) to new upper support. IF this occurs, THEN upside is wide open to 2154 – 56 zone.
Scenario 2: Initial Sign of Weakness (SOW) would be to violate 2136 handle followed by violating and converting 2132.25 to lower resistance. Should this scenario unfold Bulls will have lost control, opening the door lower targeting 2126.50 – 2124.25 STATX 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.
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