Markets
Volatility is returning to Wall Street after the major averages suffered their worst sessions since the “Black Monday” market crash in 1987. Dow futures started the night indicating an opening loss of 700 points at the lows, but are now pointing to gains of 900 points, while S&P 500 and Nasdaq futures are ahead by 4.3% and 4.7%, respectively.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:30 Import/Export Prices
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2)…Price across indexes have rallied during GLOBEX Session and setting up for strong RTH Open.
This leads into today as Cycle Day 3 (CD3)…Overnight trade action price tested CD3 Violation Zone between 2424 – 2430 as buyers responded aggressively rallying 200 handles. Bulls need to recover the Cycle Day 1 Low (2702.75) to secure Positive 3 Day Cycle Statistic.
EVERYTHING CAN HAPPEN SO NOTHING IS A SURPRISE…BE PREPARED!
We’ll cautiously keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 65 and ATR (3) 224 handles.
****IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
PVA High Edge = 2668 PVA Low Edge = 2524 Prior POC = 2622
Bull Scenario: IF Bulls hold bid above 2600, THEN initial upside estimate targets 2668 – 2703 zone.
Bear Scenario: IF Bears hold offer below 2600, THEN initial downside estimate targets 2513 – 2450 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 2617.00; LOD ATR Range Projection: 2372.00; 3 Day Central Pivot: 2715.00; 3 Day Cycle Target: 2755.00; 3 Day Average True Range 223; VIX: 65
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Overnight trade action price tested CD3 Violation Zone between 7078 – 7098 as buyers responded aggressively rallying 680 handles. Bulls need to recover the Cycle Day 1 Low (7892.75) to secure Positive 3 Day Cycle Statistic.
PVA High Edge = 7723 PVA Low Edge = 7392 Prior POC = 7600
Bull Scenario: IF Bulls hold bid above 7600, THEN initial upside estimate targets 7723 – 7800 zone.
Bear Scenario: IF Bears hold offer below 7600, THEN initial downside estimate targets 7550 – 7500 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 7555.00; LOD ATR Range Projection: 7010.00; 3 Day Central Pivot: 7910.00; 3 Day Cycle Target: 8092.00; 3 Day Average True Range: 613; VIX: 65
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.
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