Outlook 09/18: Global markets reacted to the latest trade war escalation with relative calm. Chinese stocks gained amid expectations the government will take steps to offset the negative effect of tariffs. In addition to tracking the market reaction to tariff-related news, investors will turn their attention to the housing sector on Tuesday with the September gauge on homebuilder confidence.
/ESZ8 Value: YVAH 2909 YPOC 2904 YVAL 2898
/ES Plan: Yesterday market closed bearish but overnight looks more bullish, moving within yesterday's value, so we've these options:
A) If market remains above YVAL 2898 with bullish internals, become a buyer towards YVAH 2909 GAP 2911.75 and PBTs 2916-2921. 'Look above and fail' is a bearish signal.
B) If market starts to move below YVAL 2898 with bearish internals, try to be a seller towards YLOD 2892.25 and ONL 2883.50 'Look below and fail' is a bullish signal.
Tips: I use DOM absorption and TAPE reading. Absorption occurs when aggressive traders 'Hit the Bid or Lift the Offer' on high volume, and are met with players who “absorb” all of these orders. The price moves very little or not at all. Tape reading means tracking orders greater than 30-50 contracts on the 'Time and Sales' to measure buy or sell pressure.
Today's Economic Calendar
10:00 NAHB Housing Market Index
04:00 PM Treasury International Capital
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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