Market Review
Es – Zones
The Global sell-off has been intense but there are some glimmers of hope for a counter-trend rally occurring. The strategy remains the same, buy/sell the zones and wait for the levels to come to you.
Overnight the Globex zones hit for over 100 pts pop.
Due to the volatility, we are carrying these levels into today, likely there will be some significant changes by the time we open.
Note the blue lines are entry levels and red recommended stop areas.
For today’s live levels join us on zoom.
Zoom .us ID – 818-561-3357
We do have some upper targets now to aim for, 2487 and 2611.
Good Luck,
Gagan Daphu
ES-Zones
Gagan has opened his room for Free Trail from now until April 2nd. If you have not taken a free trial in the last year you can signup here:
https://tradechat.me/co/eszone-march2020
Economic Calendar
Closing Prices
Closing prices for Wednesday, March 18
In the Tradechat Room
MiM
A buying MiM into the close and at 3:30 pm the markets agreed, making a nice 100 point move. Those 3:30 pm bulls are like clockwork, maybe not quartz timing, but they do show up. Our reveal did trim a bit but stayed a buy down from the flashing 1B to just 363M, but anything green is good.
Get the skinny when we get it. Join the MiM.
HFTAlert
Another low day of programs with just 33 of which 19 where buys and 14 sells. Lacking again today were any large program trades.
Chart of the Day
Top Stories on MTS Overnight:
- Elon Musk says maybe: An Effective Treatment for…
- Gas prices plummet as coronavirus spreads
- Elon Musk says on Twitter that his factories will…
- Coronavirus (COVID-19) Update: FDA Focuses on Safety…
- Thursday: Unemployment Claims, Philly Fed Mfg
- Smart Eye Crowned by Success, Announces 24 new…
Globex
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 2493.75 | Opening Print: 2393.50 |
| Low: 2393.50 Down 5% Limit Down | High 2442.00 |
| Volume: 296,000 | Low: 2282.75 |
| ES Settlement: 2401.50 | |
| Total Volume: 2.84M |
S&P 500 Futures: Public Dumping Stocks at Record Levels
The ES made a high at 2493.75 on Globex and settled at 2393.50 (LIMIT DOWN) and traded 2343.25 on Wednesday morning’s 8:30 CT futures open and in the first 20 minutes traded up to 2424.75. After a small pull back the ES traded up to 2442.00 then back down to 2400.00, traded back up to the 2430 level then sold off down to the 2352 area. After the pullback, the ES rallied up to the 2495 area just after Trump’s news conference came on at 11:05 CT and as the president spoke a giant sell program hit as crude oil dropped down to $21.00 a barrel and the ES TANKED down to 2282.75. The ES rallied back to the 2330 area then back down to new lows at 2262 and rallied up to 2342 and back down to 2291 at 2:30 as the MiM showed $872 million to buy. The ES traded 2246 at 2:50 as the final cash imbalance flipped to $300 million to sell and traded up to 2282 a few minutes later. On the 3:00 cash close, the ES traded at 2292.00 and settled at 2401.50 on the 3:15 futures close, down 74.75 handles or -3.02% on the day.
In terms of overall tone, it was one of the scariest days I have ever seen, even with the late-day rally and a record day for stock selling. In terms of the day’s overall trade, total volume was 3.13 million with 296,000 coming from Globex making total day volume 2.84 million contracts traded on the day session.
Our View
‘Hell is coming’ — Bill Ackman has a dire warning for Trump, CEOs if drastic measures aren’t taken now
The #ES tanked as an abundance of negative coronavirus headlines reached a fever pitch yesterday. Bill Ackman, CEO of Pershing Square Capital Management, someone I consider a very smart guy, was interviewed yesterday by CNBC and he laid out what will happen if the US doesn’t act fast to contain the virus. He said that ‘we have to shut the world’, as China did. I drove to the bank in Delray Beach thinking that everything was closed but to my surprise, all the restaurants and beaches were still open. Before I saw this video I thought people in the US take for granted the freedom we have in America and that in China, a communist nation, you would be jailed or shot if you started walking around without a mask during the quarantine/lockdown. I suggest if you have not seen this interview that you sit back and listen to it. I also suggest that you send this interview to every family member and person you know. People need to listen to what Ackman has to say. Here is the link https://www.cnbc.com/2020/03/18/bill-ackman-pleads-to-trump-to-increase-closures-to-save-the-economy-shut-it-down-now.html
Our view, it very well could be the ES made a short term low yesterday. Today is the March Quad Witching and while I am not sure of its effect, my guess is that based on the recent ‘late Friday rips’ we could see another one today. I can’t rule out some headline drops but my lean is to buy into them. I’m sorry the interview is so scary but it is what it is. ES 2550 possible.
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
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