U.S. stock index futures inched between small gains and losses overnight as two major U.S. companies – Caterpillar (NYSE:CAT) and Nvidia (NASDAQ:NVDA) – plunged post-earnings after stating that weakness in China’s economy was weighing on their results. The latest corporate warnings follow a new report from Washington that could help feed economic fears. The Congressional Budget Office predicts the recent government shutdown will cost the U.S. about $3B in reduced output in 2019, shaving about 0.4 of a percentage point off GDP in Q1.
In Asia, Japan +0.1%. Hong Kong -0.2%. China -0.1%. India -0.2%.
In Europe, at midday, London +1.4%. Paris +0.6%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P flat. Nasdaq -0.1%. Crude +0.9% to $52.47. Gold +0.4% to $1307.70. Bitcoin -0.9% to $3382.
Ten-year Treasury Yield flat at 2.74%
Source: Seeking Alpha
FOMC meeting begins
8:30International trade in goods
8:30Retail Inventories (Advance)
8:30Wholesale Inventories (Advance)
8:55Redbook Chain Store Sales
9:00S&P Corelogic Case-Shiller Home Price Index
11:30Results of $20B, 2-Year FRN Auction
1:00 PMResults of $32B, 7-Year Note Auction
***New: PTG Trading Room Chat Log’s Link
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 2608.50. Average Range for CD1 is 54.50 handles. Odds of decline > 10 handles = 72% Odds of decline > 20 = 42%
CD1 Range High = 2652.00 CD1 Range Low = 2622.00 CD1 Range Avg = 54.50
Scenario 1: IF price holds bid above 2636, THEN initial upside targets 2644.50 – 2646.50 3 Day Central Pivot Zone. Conversion of this zone opens skylight targeting 2652 CD1 Range High.
Scenario 2: IF price holds offer below 2636, THEN initial downside targets 2621.75 – 2616.75 STATX Zone. Conversion if this zone opens trap door targeting 2611.50 – 2608.50 Avg Range Decline Zone.
Range Projections and Key Levels (ES) March 2019 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal is for a decline measuring 6617.00. Average Range for CD1 is 167.00 handles. Odds of decline > 20 handles = 73% Odds of decline > 25 = 64%
CD1 Range High = 6715.50 CD1 Range Low = 6660.00 CD1 Range Avg = 167.00
Scenario 1: IF price holds bid above 6688, THEN initial upside targets 6716.25 – 6723.25 3 Day Central Pivot Zone. Conversion of this zone opens skylight targeting 6727 – 6737 CD1 Penetration Zone.
Scenario 2: IF price holds offer below 6688, THEN initial downside targets 6660.25 – 6648.25 zone. Conversion of this zone opens trap door targeting 6641.50 – 6617.50 STATX & CD1 Average Decline Zone.
Range Projections and Key Levels (NQ) March 2019 (H) Contract
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
*****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.
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