Market Review: Danny Riley

Globex

S&P 500 Futures RIP: (WHO) DECLARES THAT CORONAVIRUS CONSTITUTES A PUBLIC HEALTH EMERGENCY OF INTERNATIONAL CONCERN

I am sorry but I just could not keep up with writing a full recap. Between my personal trading and all the big dips and rip and all the headlines, it was just too much to keep up with. What I can say is the ES traded 3249.25 on the 8:30 CT futures open, made an early low at 3241, had several failed rallies but made several higher lows which I think set up the big late-day rally. At 1:30 CT, after the ‘negative’ WHO headlines, the ES ripped higher and then got hit by a big sell program after a headline hit that said the multiple rocket alerts were triggered in the Gaza/Israel border region. That low resulted in a 35+ handle rally going into the final 45 minutes of the session.   

At 2:00 CT the ES traded 3264.50 as the MiM showed $667 million to sell, traded 3257.00 at 2:30 as the MiM increased to $872 million to sell and traded 3276.50 as the final 2:50 cash imbalance showed $762 million to sell. On the 3:00 cash close, the ES printed 3289.00 and settled at 3289.75 on the 3:15 futures close, up 17.5 handles or +0.53% on the day.

In terms of the ES’s overall tone, all I can say is despite the negative headlines the shorts were caught with their pants down. Once the ES started to rally after 2:15 it was like the programs just took over and started to run every upside buy stop it could grab. It was one buy program after another. In terms of the day’s overall trade, volume was brisk with  2.7 million futures traded with 550,00 coming from Globex making a total volume of 2.15 million contracts traded during the day session. 

I know I am not the best trader but please look at some of my posts from the MrTopStep forum yesterday. Some of the early ones were not recorded because I accidentally hit a tab that blocked some of my posts. Above 3310 it could be a clear shot to 3335. We shall see. 

• IMPRO: Dboy :(12:51:25 PM) : paid 46.75 on 2
• IMPRO: Dboy :(12:51:44 PM) : I think we pop now
•  IMPRO: Dboy :(11:06:28 AM) : I was bidding 39.00
• IMPRO: Dboy :(11:06:46 AM) : bids out
• IMPRO: Dboy :(11:07:10 AM) : got the feeling everyone a little too bearish
• IMPRO: Dboy :(12:35:24 PM) : buys showing up again
• IMPRO: Dboy :(12:35:50 PM) : when I read the buy imbalance I always look at the NQ first
• IMPRO: Dboy :(12:36:39 PM) : if I see 2 or 3 it usually means a bounce is coming
•  IMPRO: Dboy :(12:51:25 PM) : paid 46.75 on 2
• IMPRO: Dboy :(12:51:44 PM) : I think we pop now
• IMPRO: Dboy :(12:52:08 PM) : 5 buy imbalance 1.8k es bough
• IMPRO: Dboy :(1:33:59 PM) : well I had it right about a long down there but fed up and got out to fast
• IMPRO: Dboy :(1:34:14 PM) : I saw the buy imbalances
• IMPRO: Dboy :(1:45:43 PM) : tick showing buy programs
• IMPRO: Dboy :(1:46:14 PM) : es back and fill
• IMPRO: Dboy :(1:59:15 PM) : nazzy won’t break
• IMPRO: Dboy :(2:12:54 PM) : sell programs to buy programs
• IMPRO: Dboy :(2:17:34 PM) : everyone trying to short and putting in buy stops
• IMPRO: Dboy :(2:59:37 PM) : gonna rip that shorts faces off
• IMPRO: Dboy :(3:26:16 PM) : I said they were going to wipe out the shorts
• IMPRO: Dboy :(3:38:35 PM) : it look like they keep buying the at 68-69
• IMPRO: Dboy :(3:42:57 PM) : probably going to 80.00
• IMPRO: Dboy :(3:54:01 PM) : they killed the shorts
• IMPRO: Dboy :(3:54:12 PM) : total murder job
• IMPRO: Dboy :(3:54:32 PM) : 40 handle rip from the low
• IMPRO: Dboy :(4:02:33 PM) : i saw this train coming

I know not all of this fits everyone’s trading style but beyond your charts and technical analysis, I thoroughly believe that it’s important to follow your instincts/gut feel.  I came in short from 3289 and I covered at 3249.00 on Globex. When I saw all the Globex volume and the big gap down I knew that the people were short and the high-frequency trading programs know when all the selling is used up.

Lastly, the ‘’premium’ Opening Print is where I lay out my gut feel for the markets. The cost is only $19.00 and I am going to lay out why the stock market rallied so much late in the day yesterday. No one else has written about this.