Markets
Big swings in the U.S. futures market are keeping traders on edge following the worst one-week decline for stocks since the global financial crisis. After a dramatic rise-and-fall, U.S. futures pointed to an advance of 2% for most of the night, before giving back the big gains (and even going red) just moments ago. The rally was fueled by hopes that central banks across the world will deliver interest rate cuts.
The 10-year Treasury yield touched a fresh record low of 1.03% over the last few hours as investors scrambled for safety. The benchmark rate, which moves inversely with prices, tumbled about 37 basis points in February alone.
In Asia, Japan +1%. Hong Kong +0.6%. China +3.2%. India -0.4%.
In Europe, at midday, London -0.5%. Paris -1.4%. Frankfurt -1.5%.
Futures at 6:20, Dow -0.3%. S&P -0.5%. Nasdaq -0.1%. Crude +1.4% to $45.39. Gold +2.5% to $1605.60. Bitcoin +1.5% to $8752.
Ten-year Treasury Yield -6 bps to 1.06%
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
S&P 500
Today is Cycle Day 3 (CD1)… Overnight trade action saw huge price swings of 132 handles and is currently trading near lower quartile of range. 3 Day Central Pivot Zone (3018 – 3024) is marked as “key resistance” while potential retest of prior sessions low (2853.25) comes into play.
Cycle extreme levels have been exceed on both sides of the range, so “HIGH SURF WARNING FLAG” remains in-effect for the foreseeable future as VIX 40 handle and ATR (3) 120 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.
Range High Edge = 3024.00 Range Low Edge = 2880.000 CD3 Range Avg = 34.00
Bull Scenario: IF Bulls hold bid above 2945, THEN initial upside estimate targets 2975 – 2995 zone.
Bear Scenario: IF Bears hold offer below 2945, THEN initial downside estimate targets 2900 – 2880 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
HOD ATR Range Projection: 2976.00; LOD ATR Range Projection: 2933.00; 3 Day Central Pivot: 3024.00; 3 Day Cycle Target: 2986.00; 10 Day Average True Range 87.50; VIX: 40.28
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Overnight trade action saw huge price swings of 453 handles and is currently trading near lower quartile of range. 3 Day Central Pivot Zone (8585 – 8610) is marked as “key resistance” while potential retest of prior sessions low (8126.25) comes into play.
Range High Edge = 8610.00 ATR Range Low = 8335.00 CD3 Range Avg = 125.00
Bull Scenario: IF Bulls hold bid above 8400, THEN initial upside estimate targets 8550 – 8600 zone.
Bear Scenario: IF Bears hold offer below 8400, THEN initial downside estimate targets 8300 – 8250 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
HOD ATR Range Projection: 8505.00; LOD ATR Range Projection: 8400.00; 3 Day Central Pivot: 8598.00; 3 Day Cycle Target: 8503.00; 10 Day Average True Range: 281.00; VIX: 40.28
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.
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