Where Futures Lies

Daily Futures Trading Strategy 28 February 2020 (Foreign Market)

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Publish date: Fri, 28 Feb 2020, 06:33 PM
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FUTURESCOIN IS GOING GLOBAL

 

WTI Crude, Gold, HSI, Dow, S&P 500 and Nasdaq

 

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E-Mini Dow

U.S. stock index futures dropped more than 1% on Thursday as investors stayed away from making riskier bets after the rapid spread of the coronavirus outside China deepened worries about growth and corporate earnings.

The number of new infections in China, the source of the outbreak, was overtaken for the first time by fresh cases elsewhere on Wednesday, most notably in Italy and Iran. Adding to worries, the U.S. Centers for Disease Control and Prevention confirmed an infection in California in a person who reportedly did not have relevant travel history or exposure to another known patient.

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Plan A : Continue to hold short as long as market stays below 25745. Targets are 25715, 25675 and 25630. 
Plan B : Cut above 25780.
Plan C : Long only if market rebounds from 25745. Targets are 25775, 25815 and 25860.
Plan D : Cut below 25710.

 

 

E-Mini S&P 500

 

The Dow tumbled 1,196.41 points, or 4.44%, to 25,761.18. The S&P 500 slid 4.42% to 2,978.76. The Nasdaq Composite dropped 4.61% to close at 8,566.48. Rising fears of a rapid coronavirus spread sent the major averages tumbling into correction territory.


The Dow, S&P 500 and Nasdaq all closed down more than 10% from their intraday all-time highs set earlier this month, entering correction territory. On Wednesday the first U.S. coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease. On Thursday, California Gov. Gavin Newsom said . Bottom line: Expect market volatility to stay elevated as investors get more information on the coronavirus.


Apple dropped 6.54% and was among the worst-performing Dow stocks on Thursday. Microsoft, meanwhile, slid 7.05% after the tech giant warned revenues for its personal computing division — which accounted for 36% of overall revenue in the previous quarter — would not meet expectations.


Personal income data and consumer sentiment numbers are scheduled for release Friday morning.

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Plan A : Long only if market supported firm above 2924.25. Targets are 2939.25, 2950.75 and 2962.25.

Plan B : Short if market rebounded but failed to support above 2924.25. Targets are 2907.25, 2896.50 and 2884.75.


 

E-Mini Nasdaq

 

U.S. stock futures pointed to more losses early Friday after the major indexes suffered a tumble that sent them more than 10% below their record highs.

 

As of 2:35 a.m. ET, Dow futures were 244 points lower, indicating an implied opening loss of more than 435 points. S&P 500 and Nasdaq 100 futures also pointed to a lower open on Friday.

 

Meanwhile, bond yields also continued to slip as the yield on the benchmark U.S. 10-year Treasury touched new record lows, according to Reuters. It was last at 1.2274%.

 

The Dow plummeted nearly 1,200 points on Thursday — its biggest one-day point drop ever — as worries over the coronavirus possibly spreading sent stocks spiraling lower.

 

The 30-stock average closed in correction territory along with the S&P 500 and Nasdaq Composite. The Dow had closed at a record high on Feb. 12. It only took the S&P 500 six days to fall from an all-time high into correction levels, marking the broad index’s fastest drop of that magnitude.

 

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Plan A : Long only if market supported firm above 8281.25. Targets are 8309.25, 8330.50 and 8353.25.

Plan B : Short if market rebounded but failed to support above 8281.25. Targets are 8243.25, 8215.75 and 8185.25.


 

HSI

Hong Kong stocks reversed earlier losses to end higher on Thursday, after Beijing indicated more support to bolster its economy pressured by the coronavirus outbreak.

 

At the close of trade, the Hang Seng index was up 82.13 points or 0.31% at 26,778.62. 

 

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Plan A : Continue to short if market stays below 26155. Targets are 26080 and 25995. Cut above 26230.
Plan B : Long only if market does not break below 26025 and rebounds. Targets are 26100 and 26185.

 

 

 

WTI Crude

 

Oil prices continued their steep decline on Thursday, with U.S. West Texas Intermediate crude falling more than 5% at the low at $45.88 per barrel-a price not seen since Jan.2019- as fears of the coronavirus outbreak, and what it could mean for crude demand, continue to batter prices.

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Plan A : Consider buying if oil price able to support above 46.0

Plan B : Cut below 45.6

Plan C : Attempt selling if oil price recovers but fails to breach above 47.0

Plan D : Cut above 47.8

 



Gold

 

Gold prices jumped on Thursday as investors piled into safe-haven assets on mounting worries about how the coronavirus outbreak might hurt the global economy.

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Plan A : Remain buy as long as gold price stays firm above 1640

Plan B : Cut below 1635

Plan C : Consider selling if gold price fails to breach and stays firm above 1650

Plan D : Cut above 1655



 

 

Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correctaysion, completion and amendment without notice.As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

 

 

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