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/
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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
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
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.”
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