Things are turning around fast again following a massive rally in the previous session, with Dow futures off by nearly 500 points and S&P 500/Nasdaq futures down by 1.9%.
In Asia, Japan +1.1%. Hong Kong +2.1%. China +2%. India +0.2%.
In Europe, at midday, London -1.6%. Paris -1.6%. Frankfurt -1.6%.
Futures at 6:20, Dow -1.7%. S&P -1.9%. Nasdaq -1.9%. Crude +0.3% to $46.93. Gold +0.2% to $1646.60. Bitcoin +4.2% to $9102.
Ten-year Treasury Yield +2 bps to 1.97%
Source: Seeking Alpha https://seekingalpha.com/
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 2 (CD2)…Price extended early rally retracing approximately 50% of the recent decline from high to low, as Federal Reserve instituted a surprise 50 bps rate cut.
This leads into today as Cycle Day 3 (CD3)…Overnight trade action has price in “pullback-mode” off prior highs, currently holding near 3050 prior Point of Control (POC) and 3 Day Central Pivot Zone (3050 – 3033) which will be marked as “key support”. Cycle targets have been easily fulfilled, so today is a “wild-card” cycle day.
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 36 and ATR (5) 114 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 = 3092 PVA Low Edge = 3046 CD3 Range Avg = 43.00
Bull Scenario: IF Bulls hold bid above 3050, THEN initial upside estimate targets 3070 – 3090 zone.
Bear Scenario: IF Bears hold offer below 3050, THEN initial downside estimate targets 3030 – 3020 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Overnight trade action has price in “pullback-mode” off prior highs, currently holding near 8730 prior Point of Control (POC) and 3 Day Central Pivot Zone (8730 – 8705) which will be marked as “key support”. Cycle targets have been easily fulfilled, so today is a “wild-card” cycle day.
PVA High Edge = 8800 PVA Low Edge = 8640 CD3 Range Avg = 155
Bull Scenario: IF Bulls hold bid above 8730, THEN initial upside estimate targets 8770 – 8800 zone.
Bear Scenario: IF Bears hold offer below 8730, THEN initial downside estimate targets 8680 – 8640 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.”
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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