Outlook 08/05: Another round of selling is taking place across the globe following the worst week of the year for the SP500. It all started with the Fed's more-hawkish-than-expected policy outlook, but quickly morphed into trade uncertainty as tensions between Washington and Beijing re-escalated. Sea of red in Asia and Europe overnight, after the yuan tumbled past the psychologically important level of 7 to the dollar for the first time since the financial crisis, a move that can be seen as part of the trade war.
/ESU19 Value: YVAH 2940 YPOC 2929 YVAL 2918 GAP 2931.75
/ES Plan: On Friday market closed bearish and Sunday's open continues on that way, moving below Friday's range, so today's options:
A) If market remains below LIS HVE 2888 with bearish internals, sell towards GAP 2981.50 and HVEs 2876-2867-2857-2843.
B) If market moves above HVE 2888 with bullish internals, buy towards HVEs 2895-2907-2918 GAP 2931.75 and ONH 2933.50.
Tips: On high volatility days like these, 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. The risk is just too great. When volatility rises this much and you see a thin order book (2 digits), I strongly recommend to stay aside. Don't panic, be patient the market recovers a 'normal' tradable regime.
Today's Economic Calendar
09:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:00 President Trump Speech
12:30 PM TD Ameritrade IMX
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