Outlook 01/11: U.S. markets, bonds and stocks bounced as China poured cold water on reports that it might stop buying U.S. debt. China's regulator said a Bloomberg report that it was considering slowing or halting its U.S. bond purchases, was possibly "fake news".
/ES Value: YVAH 2750 YPOC 2748 YVAL 2744
/ES Plan: Yesterday market closed leaving a bullish profile (PBT 2759). Overnight inventory is bullish (GBT 2758) moving above yesterday's value after China fake news, so we've these options:
A) If market remains above YVAH 2750 with bullish internals, try to be a buyer leaning on 2750-2752 towards ONH and PBTs 2758-59. Failure to take out ONH early is a signal of weakness.
B) If market starts to move below LIS 2750 with bearish internals, try to be a seller leaning on 2750-2751 towards ONL and LVN-YVAL 2744. Failure to breakdown ONL early is a signal of a strength.
Tips: Remember, stick to a trading plan and a systematic process, don't try to seek perfection. Use buy/sell range zones, not absolute levels. Take trades according to your risk, your goal is to come back next day.
Today's Economic Calendar
09:45 Bloomberg Consumer Index
10:30 EIA Natural Gas Inventory
01:00 PM 30-Year Note Auction
02:00 PM Treasury Budget
03:30 PM Fed's Dudley
04:30 PM Money Supply
04:30 PM Fed Balance Sheet
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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