Outlook 03/10: U.S. stock futures rallied back early Tuesday morning after the SP500′s worst day since the financial crisis as investors cheered potential stimulative measures to stem the economic downturn from the coronavirus. President Trump floated on Monday the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3 billion spending package Trump signed last month. However, administration officials said that the White House is not close to rolling out specific proposals to deal with a coronavirus-induced economic slowdown.
/ESH20 Value: YVAH 2835 YPOC 2815 YVAL 2760 GAP 2748.75
/ES Plan: Yesterday market closed bearish, but overnight session looks more bullish (PBT 2937), moving above yesterday's value, so these're the options for today's regular trading session:
A) If market remains above LIS 2835 with bullish internals, buy towards HVEs 2844-2867 ONH 2879 HVEs 2889-2907-2918 and PBT 2937.
B) If market moves below LIS 2835 with bearish internals, sell towards HVEs 2815-2800-2789-2775 YVAL 2760 LVN 2744 HVE 2725-2700.
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. Don't panic, be patient, don't trade until the market recovers a 'normal' regime.
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