Outlook 06/03: Following the steepest May selloff in nine years, futures begin the month down. China blames U.S. for the 'severe setback' in trade deal. Beijing published a 23-page white paper in eight languages detailing its position on Sunday, and it boils down to one statement: “the US government should bear the sole and entire responsibility for this severe setback to the China-US economic and trade consultations.”
/ESM19 Value: YVAH 2763 YPOC 2758 YVAL 2752 GAP 2752
/ES Plan: On Friday market closed bearish (PBT 2725) but overnight looks more balanced, moving below Friday's range, so today's options:
A) If market remains above LIS LVN 2744 with bullish internals, buy towards YLOD 2750 GAP 2752 and HVEs 2754-2765.
B) If market starts to move below 2744 with bearish internals, sell towards HVE 2738 ONL 2731.25 and HVE-PBT 2726.
Tips: The primary idea of Market Profile is to use 'time' as a constant and 'price' as a variable. When we look at the profile chart we can estimate what the price is doing and where is it creating a value and what is the accepted fairest price of that range. The logic here is that: 1.Price advertises the opportunity. 2.Time regulates the opportunity and 3.Volume measures success or failure of the advertised opportunities.
Today's Economic Calendar
09:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
01:25 PM Fed's Bullard speech
Questions via @verniman direct message (RTH) or email (After Close).
Glossary of terms
