With the S&P up so much on Globex yesterday I think it’s fair to say that the guys with the ‘better seats’ that bought the $3.2 billion on Tuesday’s 2:45 CT cash imbalance knew the markets were going up. Amazon (AMZN) is up $51.00 and Apple (AAPL) up $6.70, closing above $300.00. In addition to several big-name stocks trading higher, bonds and gold were trading higher also.
The ES traded 3247 on the open, rallied up to 3251.75, sold off down to 3236.50 and rallied back up to the 3244 level then sold off down to a new low at 3236.00, two ticks above the early low. The ES then rallied 9 handles up to the 3245 area, then back down to 3240.25, then rallied up to the 3249.00 area as the early MiM started to show $630 million to buy going into 2:00.
At 2:30 the ES was trading 3249.50 as the MIM showed $ 1.35 billion to buy, traded 3250.50 as the final 2:45 cash imbalance showed $1.35 billion to buy and traded up to 3257.00. as the MiM widened out to $3.6 billion, too, but at 2:58. The ES traded 3258.25 on the 3:00 cash close and settled on all-time new highs at 3259.25 on the 3:15 futures’ close, up 23.25 handles or +0.72% on the day.
In the end, the overall tone of the ES was very firm. In terms of the day’s overall volume, 1.35 million futures traded.
FYI: I am changing the format a little, I am no longer going to do all the daily twists and turns but I will continue to provide color and include the after 2:00 prices, MiM, and the overall tone and volume. We have a great lineup of contributors who will be providing the Market Review beginning Monday, Jan. 6, on the following schedule:
Monday – David Zimmerman – AMS
Tuesday – Discovery Trading Group (DTG)
Wednesday – David Dube – Polaris Trading Group
Thursday – Gagan Daphu – ES-Zone
Friday – Danny Riley – MrTopStep
Economic Calendar
Closing Prices
In the Tradechat Rooms
The MiM
Happy new year. That 3:50 and closing candle was a real bear crusher and with today’s news-based gap down makes it even more insulting to the bears that crawled out at a possible high. It is a good time for a correction and this gap down might just be used as that opportunity.
The MiM showed a ton of cash coming into a still low volume market as new money was being put to work. The money managers’ “beat the S&P 500” game began yesterday. All their hard work is done between now and May and hopefully, once they are ahead of the index, a simple shift to an S&P 500 ETF will secure another winning year. We should continue to see buys in the MIM next week.
HFT Alert
Several buy programs along with a capper, the biggest of the programs with 339 symbols involved. That had been a great location to short but not yesterday, you would have been crushed. There was a total of 8 large programs detected, 7 buys and 1 sell. Today is a different day with a large gap down that will either generate its own selling correction or be seen as the last buying opportunity of 2020. It is going to be action-packed today with some decent two-way trading I would think.
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As always, please use protective buy and sell stops when trading futures and options.
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