Polaris Trading Group (PTG) provides institutional quality futures day trading education that includes an Online Study Course, Live Trading Room, and ongoing Training and Mentoring. David Dube, a thirty-year investment banks and hedge funds veteran trader, moderates the PTG Trading Room, where he provides traders-specific information and institutional analysis on current market conditions. The report included below breaks down today’s (10.27.15) trade strategy from Polaris Trading Group.
It’s not the meeting we’ve all been waiting for, but the Fed’s policy-making committee convenes in Washington today and tomorrow, where it’s expected to keep benchmark interest rates near zero. The real question is whether the Fed will raise rates at its next gathering in December. Officials may provide some hints to that answer in tomorrow’s post-meeting statement by signaling a change in stance to recent soft U.S. economic data and events in the global markets.
FOMC meeting begins
8:30 Durable Goods
8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
9:45 PMI Services Index Flash
10:00 Richmond Fed Mfg.
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
S&P e-mini (ES) traded in a relatively narrow range with sub-par volume in prior session as Mr. Market awaits the FED Policy Decision at this week’s meeting. Overnight night trade continues where cash ended…Quiet within narrow range. KEY SUPPORT which we marked as 1958.00 SPOT remains…KEY RESISTANCE 1971.00 SPOT…So no change in either parameters. Range and volume are declining (compressing)…This contraction phase will certainly be followed by an expansion…just which direction? Advantage Bulls!
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL UP…Odds of Rally > 10 = 84%; Odds of Rally > 20 = 45%; Average Range = 14.50; Max Average Range = 22.75; Possible HOD = 2080.25 (CD2 Penetration); Possible LOD = 2046.50 (CD2 Violation)
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (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. We will identify specific trade levels in Trading Room.
Scenario 1: IF Price clears and converts PH (2068.00), THEN upside targets 2076 – 2080 STATX Zone. Cycle Rally Target measures 2091.00
Scenario 2: Violation and conversion of 2057.50 initially targets 2053.00 SPOT, followed by 2049.50 – 2046.50 STATX Zone and 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!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” – Bruce Lee
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*****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.”