Trade Strategy 3.9.20

Markets

Black Swans Circle Longest Bull

A sea of red was seen around the world, with the Euro Stoxx 50 Index now down nearly 7%, Japan’s Nikkei tumbling about 5% and Italy on the edge of a bear market.

Amid an increase in the number of global coronavirus cases (110K) and deaths (3,840), Italy locked down nearly a quarter of its population (17M people) as the World Health Organization urged governments to take decisive action.

Collapse in Treasury yields

The fears sent the benchmark 10-year Treasury yield below 0.4% for the first time ever, touching 0.3469% in overnight trade. In fact, yields on all maturities (including the 30-year and two-year) fell below 1% for the first time, with investors pricing a Fed rate cut to 0% in coming months. The flight to safety also saw gold futures blast past $1,700/oz overnight until the “sell everything” mindset kicked in, with the precious metal now falling back to $1,666/oz.

‘Historic’ oil price war

The failure of OPEC+ to agree on production cuts sent crude into freefall, plunging as much as 33% to $27 per barrel (it started the year in the mid-$60s). Besides a collapse in demand due to the coronavirus, Saudi Arabia launched an all-out oil price war by slashing pricing for its crude in an effort to push as many barrels into the market as possible. It was in response to a face slap from Russia, which refused to cut output further and insisted that U.S. shale producers should be made to share the pain.

In Asia, Japan -5.4%. Hong Kong -4.2%. China -3%. India -5.2%.
In Europe, at midday, London -6.4%. Paris -6.6%. Frankfurt -6.8%.
Futures at 6:20, Dow -4.9%. S&P -4.9%. Nasdaq -4.8%. Crude -21.2% to $32.54. Gold -0.4% to $1666. Bitcoin -9,4% to $7917.
Ten-year Treasury Yield -3 bps to 0.45%

Source: Seeking Alpha https://seekingalpha.com/

Economic Calendar

12:30 PM TD Ameritrade IMX

https://www.investing.com/economic-calendar/

***New: PTG Trading Room Chat Log’s Link

S&P 500

*****ALERT NOTICE: Normal Daily Trade Strategy Briefing will be suspended today as Futures are 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% (to 2,764) at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13% (2,586). If the decline hits 20% (2,377.9), markets will close for the day

BOTTOM LINE >>> This is NOT the time to become a bold trader….Preservation of Capital is at UTMOST IMPORTANCE.

I CANNOT STRESS ENOUGH IMPLEMENTATION OF DEFENSIVE MEASURES.

LIVE TO TRADE ANOTHER DAY! CAPEESH?

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


Leave a Reply