Outlook 03/18: Stock futures fell in early morning trading on Wednesday as the markets remained highly volatile with the government response to the coronavirus fallout still unfolding. Futures contracts for the indices were in “limit down” territory, a situation where trading is halted after futures have hit a 5% loss and can go no lower. Exchange-traded funds that track the indexes are not subject to limit-down restrictions, however, and suggested what the open would look like. The SP500 ETF was down 6% in premarket trading.
/ESM20 Value: YVAH 2532 YPOC 2486 YVAL 2435 GAP 2483.25
/ES Plan: Yesterday market closed bullish (PBT 2620), but overnight looks more bearish (PBT 2300), so these're the options for today:
A) If market remains below LIS HVE 2416 with bearish internals, sell towards RTH Limit Down 2342.50 and LVN-PBT 2300.
B) If market moves below LIS HVE 2416 with bullish internals, buy towards HVE 2445 ONH 2486.25 and HVE 2508-2540-2562.
Note: On these high volatility days (VIX>70), 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. Risk is just too great (>20p) so I recommend to stay aside.
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