Outlook 03/12: U.S. stock futures fell another 5% in overnight action, hitting the so-called limit down threshold. SP500 crashed on Wednesday after the WHO classified the coronavirus outbreak as a pandemic for the first time. Threatening more disruptions to the world economy, President Trump said all travel from Europe to the U.S. would be suspended for 30 days. Efforts were also announced on deferred tax payments, payroll tax relief and low interest business loans, but investors seemed to have been looking for more.
/ESH20 Value: YVAH 2795 YPOC 2745 YVAL 2730 GAP 2740.75
/ES Plan: Yesterday market closed bearish (PBT 2620), and overnight continues on that way until limit down was hit, so these're the options for today's regular trading session:
A) If market remains below LIS HVE 2620 with bearish internals, sell towards ONL 2601 HVE 2562 and LVN 2520.
B) If market moves above LIS HVE 2620 with bullish internals, buy towards HVE 2652-2684 LVN 2700 and YVAL 2730.
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, I strongly recommend to stay aside. Keep in mind that we're on the rollover week and volume dries up from March to June contract, so trade setups that usually work well, may fail completely.
Market Movers
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
01:00 PM 30-Year Note Auction
04:30 PM Money Supply
04:30 PM Fed Balance Sheet
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