Outlook 03/25: Stock futures pointed to a pullback at the open Wednesday following Tuesday’s historic rally in anticipation of a coronavirus stimulus deal by Congress. The White House and Senate reached an agreement overnight. Peter Oppenheimer, equity strategist at Goldman Sachs, said there are four “components” to the market stabilizing from here: ″(1) A sign that the policy intervention is sufficient to prevent severe second- and third-round economic shocks; (2) A sign that the infection rate is reaching a peak; (3) A sign that the economic downturn may be slowing; and (4) Cheap valuations.
/ESM20 Value: YVAH 2428 YPOC 2377 YVAL 2350 GAP 2435
/ES Plan: Last session market closed bullish (PBT 2523), but overnight looks more bearish (PBT 2328), so these're the options for today:
A) If market remains above LIS HVE 2416 with bullish internals, buy towards GAP 2435 HVEs 2454-2480 ONH 2333.50 and HVE 2498.
B) If market moves below LIS HVE 2416 with bearish internals, sell towards HVE 2390 ONL 2386 and HVEs 2367-2322-2295-2274.
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.
Market Movers
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $18B, 2-Year FRN Auction
01:00 PM 5-Year Note Auction
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