Outlook 03/03: U.S. stock index futures indicated a balanced open on Tuesday after the strongest day in more than a decade immediately followed the worst week since the financial crisis. A statement by the G-7 failed to assuage investor concerns over how the biggest global economies will curb the economic impact of the coronavirus. Traders now seeing a 100% chance of a 50-basis point rate cut at the Fed's March meeting. For what it's worth, moderate Democrats have also consolidated around Joe Biden's candidacy ahead of Super Tuesday.
/ESH20 Value: YVAH 3037 YPOC 2968 YVAL 2950 GAP 3064
/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 3074 with bullish internals, buy towards HVEs 3091-3098 ONH 3100 and GAP 3109.
B) If market moves below LIS 3074 with bearish internals, sell towards GAP 3064 ONL 3045.50 YVAH 3037 and HVE 3025.
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
7:00AM G7 Meeting begins
2:50PM FOMC Member Mester Speech
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