Markets
S&P 500 and Nasdaq futures fell another 5% in overnight action, hitting the so-called limit down threshold, as the two indexes look to join the Dow Jones Industrial Average in bear market territory.
The latter, which tumbled another 1,200 points in recent hours, crashed on Wednesday after the WHO classified the coronavirus outbreak as a pandemic for the first time.
Threatening more disruptions to the world economy, President Trump said all travel from Europe to the U.S. would be suspended for 30 days. Efforts were also announced on deferred tax payments, payroll tax relief and low interest business loans, but investors seemed to have been looking for more
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Prior Session was Cycle Day 1 (CD1)…Normal / Extreme Normal CD1 decline pushed price down hard yet again closing on lows of session.
This leads us into today’s Cycle Day 2 (CD2)…Another LIMIT DOWN 5% has occurred during overnight trade to 2601. As of this writing (8:00 am) price is “pegged” to the low, but no strong buying has yet to develop. CD2 Statistical Extreme Target (2612) has also been fulfilled.
Futures hit LIMIT DOWN during overnight trade…Many of you have not experienced “limit down” sessions, so please review the NYSE Circuit Breaker Rules in the section below.
Stock index futures in the U.S. plunged the 5% limit overnight, triggering limit-down rules, meaning only transactions at or above that threshold are allowed. Once the market opens, NYSE circuit breakers will work like this: trading halts for 15 minutes if the S&P 500 falls 7% at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13%. If the decline hits 20%, markets will close for the day
P – VA High = 2787 P – VA Low = 2731 P – POC = 2739
Bull Scenario: IF Bulls hold bid above 2601, THEN initial upside estimate targets 2650 – 2670 zone
Bear Scenario: IF Bears hold offer below 2601, THEN initial downside estimate targets 2582 – 2560 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 2600.00; LOD ATR Range Projection: 2776.00; 3 Day Central Pivot: 2793.00; 3 Day Cycle Target: 2746.00; 10 Day Average True Range 151.00; VIX: 62.50
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Another LIMIT DOWN 5% has occurred during overnight trade to 7590. As of this writing (8:00 am) price is “pegged” to the low, but no strong buying has yet to develop.
P – VA High = 8200 P – VA Low = 8026 P – POC = 8150
Bull Scenario: IF Bulls hold bid above 7590, THEN initial upside estimate targets 7740 – 7790 zone.
Bear Scenario: IF Bears hold offer below 7590, THEN initial downside estimate targets 7500 – 7350 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 8077.00; LOD ATR Range Projection: 7632.00; 3 Day Central Pivot: 8100.00; 3 Day Cycle Target: 8062.00; 10 Day Average True Range: 425.00; VIX: 62.50
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.”
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