Outlook 03/04: U.S. stock index futures pointed to a sharply higher open on Wednesday as results on Super Tuesday showed former Vice President Joe Biden notching key wins and reassuring investors of his place amid the top candidates in the Democratic pool. Additionally, U.S. companies kept adding jobs in February despite the coronavirus scare, as private payrolls expanded well above the pace that Wall Street had anticipated.
/ESH20 Value: YVAH 3111 YPOC 3071 YVAL 3025 GAP 2997
/ES Plan: Yesterday market closed bimodal (LIS 3042), but overnight session looks more bullish (PBT 3135), still moving within yesterday's value, so these're the options for today's regular trading session:
A) If market moves above LIS 3042 with bullish internals, buy towards HVE 3063 ONH 3074 and HVEs 3091-3116-3133.
B) If market moves below LIS 3042 with bearish internals, sell towards YVAL 3025 GAP 2997 HVE 2980 and ONL 2076.
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 (>30p 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 30 points.
Today's Economic Calendar
09:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
02:00 PM Fed's Beige Book
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