Markets
Japan’s central bank held rates steady at -0.1% following its latest meeting, but announced it would modify its policy framework, marking the latest attempt to boost prices and goose economic growth. Among the changes, the BOJ said it would introduce yield curve controls, eliminate the maturity range of its bond purchases, abandon its monetary base targets and confirmed that cutting rates further remained an option. Nikkei +1.9%.
Traders are now shifting their focus to the Federal Reserve, which is scheduled to release its policy statement and updated summary of economic projections at 2 p.m. ET. Chairwoman Janet Yellen will hold her press conference a half hour later. With weaker-than-expected economic data prompting many to call off bets on a rate hike, investors will be looking for signals about where borrowing costs are headed in the months and years ahead.
In Asia, Japan +1.9% to 16807. Hong Kong +0.6% to 23669. China +0.1% to 3025. India -0.1% to 28507.
In Europe, at midday, London +0.4%. Paris +1.3%. Frankfurt +1.1%.
Futures at 6:20, Dow +0.4%. S&P +0.4%. Nasdaq +0.5%. Crude +2.2% to $45.00. Gold +0.5% to $1324.10.
Ten-year Treasury Yield flat at 1.69%
(Source: Seeking Alpha)
Economic Calendar
7:00 MBA Mortgage Applications
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:00 PM FOMC Forecast
2:00 PM Chairman Press Conference
PTG Trading
Price opened in prior cash session with a bullish “inside gap”…which failed to hold bid above ORRMP. As such sellers continued to build throughout the session progressively pushing price lower to test the Three-Day Central Pivot (2132.25) where buyers stepped-in to stop the decline. Overnight action has price rallying sharply higher ahead of FED Policy Decision later today.
Today is Cycle Day 1 (CD1)…Normal for decline which began in prior session to continue…though early action has price rallying.
Expectation is low for the Fed to hike at today’s meeting, though the focus will be primarily on their infamous “Dot Plot” Array. All but four of 102 economists surveyed by Bloomberg predicting the Fed will hold off from raising interest rates – she is expected to do nothing, while lowering rate hike expectations further.-Zero Hedge
Click on icon below to view the Implied Fed Funds Target Rate “Dot-Plot”
Range Projections and Key Levels
HOD Range Projection: 2152.00; LOD Range Projection: 2118.25; Cycle Day 1 Low: 2123.00; 3 Day Central Pivot: 2133.75; 3 Day Cycle Target: 2147.00; 10 Day Average True Range: 25.73
**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: Price will need to clear and convert PH (2143.50) to upper support to increase odds of continued rally which began in overnight session. Projected targets are: 2147…2152 – 54 zone.
Scenario 2: IF price fails to convert 2143.50 to support and sellers return with aggressiveness shown in prior session, THEN expectation will be for retest of 2130 – 32 pivot lows.
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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