Outlook 05/13: It's looking like another tough week for Wall Street, with SP500futures off more than 50 points amid countermeasures from China after trade talks with the U.S. appeared to end in a stalemate. China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade. Many Chinese scholars are discussing the possibility of dumping US Treasuries.
/ESM19 Value: YVAH 2888 YPOC 2859 YVAL 2850 GAP 2886.75
/ES Plan: On Friday market closed balanced but Sunday's open and overnight action looks more bearish, moving below Friday's value, so we've these options:
A) If market remains below LIS HVE 2837 with bearish internals, sell towards HVE 2826 GAP 2821.25 and HVEs 2819-2814-2808-2802.
B) If market starts to move above HVE 2837 with bullish internals, buy towards HVEs 2842-2846-2847-2850-2857 and ONH 2869.25
Tips: We're on high volatility days so your first trading rule is 'manage your risk'. Regardless of how much more money you could have made, you do realize that you just can not manage risk on this enviroment. When volatility rises and you see a thin order book, I recommend to stay aside until markets recover a 'normal' tradable regime.
Today's Economic Calendar
9:05 Fed's Rosengren Speech
9:10 Fed's Clarida Speech
Questions via @verniman direct message (RTH) or email (After Close).
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