Markets
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/
Economic Calendar
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
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
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
HOD ATR Range Projection: 2958.00; LOD ATR Range Projection: 2900.00; 3 Day Central Pivot: 3100.00; 3 Day Cycle Target: 2986.00; 10 Day Average True Range 80.00; VIX: 40.78
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
HOD ATR Range Projection: 8393.00; LOD ATR Range Projection: 8183.00; 3 Day Central Pivot: 8782.00; 3 Day Cycle Target: 8504.00; 10 Day Average True Range: 264.00; VIX: 40.78
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.”
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