Outlook 03/02: U.S. stock index futures slide after volatile overnight session as market struggles to rebound. The slight drop in futures masks what was a volatile overnight session where SP500 futures traded in a range of more than 100 points, indicating this week may be as volatile as last week as well. Overnight initial rally was fueled by hopes that central banks across the world will deliver interest rate cuts.
/ESH20 Value: YVAH 2940 YPOC 2902 YVAL 2884 GAP 2971
/ES Plan: Last session market closed bullish but overnight session looks more balanced, still moving above yesterday's value, so these're the options for today's regular trading session:
A) If market remains above LIS HVE 2960 with bullish internals, buy towards GAP 2971 HVEs 2980-2895-3012 and ONH-HVE 3021-3025.
B) If market moves below LIS HVE 2960 with bearish internals, sell towards YVAH 2940 and HVEs 2937-2918-2907 and ONL-HVE 2889.
Note: On high volatility days, 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 (>20p stops). When volatility rises this much and you see a thin order book (1-2 digits), I strongly recommend to stay aside. Don't panic, be patient until the market recovers a 'normal' tradable regime. Keep in mind that current /ES rotation factor is greater than 20 points.
Today's Economic Calendar
09:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
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