Markets
The strongest day in more than a decade immediately followed the worst week since the financial crisis (talk about volatility). The Dow surged over 5% on Monday, while the S&P 500 and Nasdaq each jumped more than 4%, boosted by expectations of central bank firepower to battle the economic impacts of the coronavirus. U.S. futures tacked on another 1% advance overnight, with traders now seeing a 100% chance of a 50-basis point rate cut at the Fed’s March meeting.
In Asia, Japan -1.2%. Hong Kong flat. China +0.7%. India +1.3%.
In Europe, at midday, London +2.4%. Paris +2.4%. Frankfurt +2.9%.
Futures at 6:20, Dow +1%. S&P +0.9%. Nasdaq +1.2%. Crude +3.3% to $48.30. Gold +0.3% to $1599.50. Bitcoin +1.5% to $8844.
Ten-year Treasury Yield +7 bps to 1.16%
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:55 Redbook Chain Store Sales
6:30 PM Fed’s Evans Speech
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 1 (CD1)…Price extending “rip-facing” rally which began from deep statistical lows in prior session. Currently trading near prior high (3093) pre-RTH, bulls will need to continue control and push above CD1 Penetration Zone (3102 – 3104) for further gains.
We’ll keep the “High Surf Warning” for today’s session, as price is vulnerable to “spurty” swings in momentum. As always Manage Risk.
ATR Range High = 3144.00 ATR Range Low = 3102.00 ATR Range Avg = 98.50
Bull Scenario: IF Bulls hold bid above 3072, THEN initial upside estimate targets 3102 3104 zone
Bear Scenario: IF Bears hold offer below 3072, THEN initial downside estimate targets 3054 – 3037 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 3144.00; LOD ATR Range Projection: 3102.00; 3 Day Central Pivot: 2990.00; 3 Day Cycle Target: 3092.00; 10 Day Average True Range 98.50; VIX: 32.75
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price extending “rip-facing” rally which began from deep statistical lows in prior session. Currently trading near prior high (8883.00) pre-RTH, bulls will need to continue control and push above CD1 Penetration Zone (8905 – 8925) for further gains.
CD1 Range High = 8928.00 CD1 Range Low = 8771.00 CD1 Range Avg = 146.00
Bull Scenario: IF Bulls hold bid above 8820, THEN initial upside estimate targets 8884 – 8905 zone.
Bear Scenario: IF Bears hold offer below 8820, THEN initial downside estimate targets 8771 – 8740 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 9047.50; LOD ATR Range Projection: 8608.50; 3 Day Central Pivot: 8526.00; 3 Day Cycle Target: 8928.00; 10 Day Average True Range: 309.00; VIX: 32.75
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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