Facebook Revenue Surges Almost 50%

Index Futures Net Changes and Settlements: 

Foreign Markets, Fair Value and Volume:

• • In Asia 7 out of 11 markets closed lower: Shanghai Comp -1.35%, Hang Seng -1.06%, Nikkei +0.47%
  • In Europe 9 out of 12 markets are trading higher: CAC +0.48%, DAX +0.19%, FTSE +0.11%
  • Fair Value: S&P -1.76, NASDAQ 3.54, Dow -44.85
  • Total Volume: 1.9 mil ESM & 4.5 k SPM traded in the pit

Today’s Economic Calendar:

Weekly Bill Settlement, 52-Week Bill Settlement, Durable Goods Orders 8:30 AM ET, International Trade in Goods 8:30 AM ET, Jobless Claims 8:30 AM ET, Retail Inventories [Advance] 8:30 AM ET, Wholesale Inventories [Advance] 8:30 AM ET, Bloomberg Consumer Comfort Index 9:45 AM ET, EIA Natural Gas Report 10:30 AM ET, Kansas City Fed Manufacturing Index 11:00 AM ET, 3-Month Bill Announcement 11:00 AM ET, 6-Month Bill Announcement 11:00 AM ET, 7-Yr Note Auction 1:00 PM ET, Fed Balance Sheet 4:30 PM ET, Money Supply 4:30 PM ET

S&P 500 Futures: #ES Playing The Too Long Too Short Game

It was another hellish day for the US stock markets. On Globex the ES made a high at 2939.75 and then opened at 2633.50 on Wednesdays 8:30 futures open and 15 minutes later dropped down to 2611.25, did some back and fill and rallied up to 2632.25. Just after the low, I put this out on the forum:

After I put this out the ES rallied up to 2634.75, a 23.50 handle rally. The ES then sold off down to 2620.00 going into the NY lunch time and traded back up to 2633.50. The ES then sold back off down to the vwap at 2625.25 and then got hit by a big buy program at 12:30 CT that pushing the future up to a new high at 2637.50, pulled back down to 2627.00 and then slingshot up to a new high at 2644.25 as the MiM went from selling $157 million to sell $233 million. As the MiM increased to sell $467 million the ES pulled back to the 2629.50. As the MiM went from selling $485 million to sell to over 1 billion for sale. The ES traded 2629.75 on the 2:45 cash imbalance, rallied up to 2638.00 on the 3:00 cash close and settled at  2644.00 on the 3:15 futures close, up 8.5 handles or up 0.32%.

In the end, the ES was short-term oversold and as I have said many times when people get too short the ES goes up and when people get too long the ES goes down. In terms of the day’s overall trade, it was a busy day. In terms of the ES’s overall tone, the price action was firm.

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As always, please use protective buy and sell stops when trading futures and options.

_{Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.}