Markets
Deutsche Bank -4% in Frankfurt, as worrying headlines continue to surface and traders fear contagion due to its position at the heart of world finance. A report yesterday suggested a number of hedge funds were cutting back their exposure to the lender, coming on top of a $14B fine the DOJ wants Deutsche (NYSE:DB) to pay and suggestions the German government won’t be helping the ailing bank. In June, the IMF described the institution as “the most important net contributor to systemic risks in the global banking system.”
In Asia, Japan -1.5% to 16449. Hong Kong -1.9% to 23297. China +0.2% to 3004. India +0.1% to 27865.
In Europe, at midday, London -0.9%. Paris -1.4%. Frankfurt -1.1%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.3%. Crude -1.1% to $47.30. Gold +0.3% to $1329.90.
Ten-year Treasury Yield -1 bps to 1.54%
(Source: Seeking Alpha)
Economic Calendar
8:30 Personal income and outlays
8:30 Chicago PMI
10:00 Consumer sentiment
1:00 PM Baker-Hughes Rig Count
1:00 PM Fed’s Kaplan speech
PTG Trading
Yesterday’s Session began a new Cycle Day 1 and we stated in DTS Briefing 9.29.16 “Prior cycle targets have been exceeded, so as such, the next cycle decline could potentially begin as would be normal for today.” The decline did unfold as price failed to hold bid above CD3 High (2166.25) and subsequently testing 2136.25, prior CD1 Low.
Today is Cycle Day 2 (CD2)…Expectation is for price to hold at or above new CD1 Low (2137.25) and produce some type of rally into quarter-end window dressing.
Range Projections and Key Levels
HOD Range Projection: 2155.50; LOD Range Projection: 2130.00; Cycle Day 1 Low: 2137.25; 3 Day Central Pivot: 2151.50; 3 Day Cycle Target: 2156.00; 10 Day Average True Range: 19.60
**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 holds above 2137.25 (CD1 Low), THEN expectation is for a rally attempt to reach 2150 – 2153 Three-Day Central Pivot Zone. Further strength above this zone targets 2156 Average 3 Day Cycle Target.
Scenario 2: Violation and conversion below 2137.25 (CD1 Low) opens door for continuation selling targeting 2130 – 2128.50 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.
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