Worst Week Since The Financial Crisis
Stock sentiment swung wildly overnight, with DJIA futures plunging as much as 600 points only to recover those losses, and are now off 0.9%. It’s been an overall wild week:
The Dow, S&P 500 and Nasdaq all entered correction territory on Thursday, as well as European stocks and seven major Asia-Pacific markets. Crude prices are down around 14% since Monday, while the benchmark U.S. 10-year Treasury yield just hit another all-time low of 1.19%.
Besides risks to global supply chains, travel restrictions and profit warnings, many are seeing other dangers as part of a worsening economic picture. “U.S. companies will generate no earnings growth in 2020,” wrote David Kostin, Goldman’s chief U.S. equity strategist, despite a consensus from Wall Street that still calls for earnings to climb 7% this year. “We have cut our 2020 global growth forecast to 2.8% (from 3.2%).
In Asia, Japan -3.7%. Hong Kong -2.4%. China -3.7%. India -3.6%.
In Europe, at midday, London -3%. Paris -2.8%. Frankfurt -3.6%.
Futures at 6:20, Dow -0.9%. S&P -0.9%. Nasdaq -0.9%. Crude -3.5% to $45.43. Gold -0.7% to $1631.60. Bitcoin -2.4% to $8620.
Ten-year Treasury Yield -1 bps to 1.19%
Source: Seeking Alpha https://seekingalpha.com/
8:30 International Trade in Goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 Personal Income and Outlays
9:15 Fed’s Bullard: U.S. Monetary and Economic Policy
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
***New: PTG Trading Room Chat Log’s Link
Today is Cycle Day 2 (CD2)…Decline extended into GLOBEX Session as price entered officially into “corrective territory” Currently pre-RTH price has recovered Cycle Day 1 Low (2944.50) off deep overnight lows.
Traders will be searching for a “relief-rally” or at minimum some price stabilization to stem further downside. VIX is currently above 40 so with volatility high, be cautious with positioning and risk management.
ATR Range High = 2958.00 VA Range Low = 2900.00 CD2 Range Avg = 35.75
Bull Scenario: IF Bulls hold bid above 2945, THEN initial upside estimate targets 2970 – 2985 zone
Bear Scenario: IF Bears hold offer below 2945, THEN initial downside estimate targets 2920 – 2900 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD1)…Decline extended into GLOBEX Session as price entered officially into “corrective territory” Currently pre-RTH price has recovered Cycle Day 1 Low (8334.25) off deep overnight lows.
ATR Range High = 8393.00 ATR Range Low = 8183.00 CD2 Range Avg = 130.00
Bull Scenario: IF Bulls hold bid above 8300, THEN initial upside estimate targets 8350 – 8395 zone.
Bear Scenario: IF Bears hold offer below 8300, THEN initial downside estimate targets 8240 – 8200 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.”
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