More pain will come at the open, with Dow futures sinking 652 points and the S&P 500 and Nasdaq down 2.7% and 2.9%, respectively. The spread of coronavirus has accelerated in the U.S., and investors who once downplayed down the virus are now re-assessing risks.
The 10-year Treasury yield hit an all-time low of 0.694% overnight as the coronavirus continued to push investors into the safety of government bonds.
In Asia, Japan -2.7%. Hong Kong -2.3%. China -1.2%. India -2.3%.
In Europe, at midday, London -3.2%. Paris -3.8%. Frankfurt -3.5%.
Futures at 6:20, Dow -2.5%. S&P -2.7%. Nasdaq -2.9%. Crude -4.6% to $43.78. Gold +1% to $1684.10. Bitcoin +0.7% to $9168.
Ten-year Treasury Yield -2 bps to 0.75%
Source: Seeking Alpha https://seekingalpha.com/
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Today is Cycle Day 1 (CD1)…After reaching CD3 Penetration Target (3128) and retracement “semi” – stabilization, price has once again taken a “nose-dive on continued fears of spreading COVD-19.
Price is currently trading sub 2930 handle which is Cycle Day 1 Maximum Statistical Extreme Violation Level. (That’s a mouthful!) Suffice-it-to-say >> EXTREME. 5-Day Average True Range (133) measures 2900. VIX = 47
We’ll keep the “High Surf Warning” for today’s session.
ATR Range High = 3064 ATR Range Low = 2898 ATR Range Avg = 133
Bull Scenario: IF Bulls hold bid above 2930, THEN initial upside estimate targets 2975 – 2990 zone
Bear Scenario: IF Bears hold offer below 2930, THEN initial downside estimate targets 2910 – 2900 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is currently trading sub 8412 handle which is Cycle Day 1 Maximum Statistical Extreme Violation Level. (That’s a mouthful!) Suffice-it-to-say >> EXTREME. 5-Day Average True Range (133) measures 2900. VIX = 45
VA Range High = 8606 VA Range Low = 8400 CD1 Range Avg = 166.00
Bull Scenario: IF Bulls hold bid above 8412, THEN initial upside estimate targets 8535 – 8595 zone.
Bear Scenario: IF Bears hold offer below 8412, THEN initial downside estimate targets 8314 – 8258 zone.
Range Projections and Key Levels (NQ) March 2020 (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.”
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