Market Review
MrTopStep: For Traders, By Traders
The S&P futures (ESC20: CME) closed on Friday at 3234.85, a few points below its opening print of 3226.36, after closing Thursday at 3257.85. Its twenty-four point trading range (3224.34 – 3246.15) gave traders reason to be involved thanks in part to the turmoil in the Middle East.
What the market did give us on Friday was a downside support level. Several attempts to break through the 3215 level brought the buyers back to the table. A forty-point trading range between the all-time-highs and the 3215 level should provide guidance.
A shout out to Danny for being right all the way up from the 3000 level calling for a short at the top. Everyone who participates in writing dialogue on the MrTopStep side brings something to the process. Without Danny’s insight and platform, many would remain unknown to the masses. We at AMS suggest you start your relationship with IMPRO and MiM. I’ve got 50+ years trading commodities and have learned quite a bit from everyone, thanks and best wishes for a happy and healthy new year.
New schedule for authorship of the Market Review:
Monday: David Zimmer – AMS Trading
Tuesday: Rob – Discovery Trading Group
Wednesday: David Dube – Polaris Trading Group
Thursday: Gagan Daphu – ES-Zone
Friday: Keith Gallagher – Wyckoff Trader
Bonus Market Review – Danny Riley:
GLOBEX
High 3263.50
Low 3206.75
Volume 470,000
Day Session 1/3/2020
Opening Print 32
High 3246.25
Low 3220.75
ES Settlement 3235.25, down 0.80%
Total Volume 1.46 million
#ES TANKS: Iran Missile Strike Act Of War
Everything was quiet during Thursday night’s Globex session until President Trump ordered a missile strike that killed Qassem Soleimani, Iran’s top military leader and head of the Quad Force. The S&P futures (ESH20: CME) were trading near the highs of the night session at the 3263 area when the headlines hit. The strange thing, the ES didn’t react right away. I personally sold 3262.50 and while the future did downtick it took several minutes before the futures actually started to get hit. As more headlines hit oil and gold started moving up and the ES started to sink. By the time I went to bed the future was traded way down to 3229. At 4:57 CT the ES traded down to the Globex low at 3206.75 and then it started to short cover and traded 3221.25 on the 8:30 CT futures open.
After chopping around the ES sold off down to down to 3220.75, rallied up to the 3239-40 level, sold back off a few times down to the 3231-33 area and then, after some back and fill, I put this out in the chat : IMPRO: Dboy :(11:47:33 AM): back to the 40.00 level, stops above IMPRO: Dboy :(12:42:37 PM): 45-46 should be it and around xxx the ES started to take out the buy stops above 3240 and made its high for the day at 3246.25.
At 2:30 the ES was trading 3238.25 as the MIM flipped from over $500 million to buy to $285 million to sell, traded 3237.00 as the final 2:45 cash imbalance showed $285 million to sell, traded 3235.50 on the 3:00 cash close and settled at 3235.25 on the 3:15 futures close, down 26.25 handles or -0.80% on the day.
In the end, the overall tone of the ES was very firm. In terms of the day’s overall volume, 1.46 million futures traded.
Economic Calendar
Closing Prices
In the Tradechat Rooms
The MiM
Friday, despite the scary news, the market held up pretty well. No mass exodus across the Sinai quite yet. We started up with a buy that swung into bear territory leading to the 3:50 pm ET reveal. Easily paired down for an orderly imbalance close.
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. Decisions 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.
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