Market Review
I don’t have a choice, I never forget. As my father and I watched the image on the small black and white TV at the rental store, we could not believe what we saw. He had just moved to Colorado and I rented some chairs and a table so we could enjoy the first moment he stepped off that yellow Ryder rental truck.
Sure, I told him to put the mattresses on the end but he put them in the front. That was the only rub, him and mom sleeping on the floor. He called it a Baptist pallet since he was a Baptist preacher. As we looked at that image, dad asked what happened? A young man told us a plane just hit the World Trade Center. We could not believe what we heard. There it was, a smouldering image. Dad asked; “Where is the plane?” The young man did not know.
We looked at each other and immediately left, dad said; “I’ve got to get home to mom” He called his wife mom… Please do not forget. Share your memories with others. I have about thirteen people whose memories I keep on that fateful day. And some left the building early before it’s demise…
The key to looking at Thursday’s trade is the look at the 14:30 trade from Wednesday. The tech stocks were in final mark up from their lows. All the stars lined up, that is until 14:30 started to see some shortening of the upward thrust and volume started to enter in.
It wasn’t a weak close. It wasn’t a strong close, either. Overnight Globex tried to hold the line but as the employment numbers entered, some supply started to enter in. Price tested the 3422 (the level I had) then the 3424 where it was just too much supply to lift.
The clock, which I keep uses a spill. And if you desired to get short, that would have been where you got short. Sure, it could have gone higher. That’s what stops are for. It did not go higher. It went lower. A lot lower. Low of day was the 3327 handle.
Looking Forward Friday, September 11, 2020
I keep the bears/bulls needs and wants in the PROS and NUMBAHS.
Bulls: need to reclaim the 3426 handle. Want to regain just past the 3452 handle.
Bears: need to reclaim the 3375 handle. Want to regain just past the 3337 handle.
Bears got the level but they need to hold the level. The day is an S3 day, It’s Friday, and summer is over. Most traders are trading Dec. contracts, some in Sept. Might be best to take the day away or not. Price drifted down yesterday on lower volume testing the lows from the previous day. Yes, we lost the rally from Thursday. Price will need to show it’s way.
I keep an internal clock, it’s the middle of the cycle. Currently, Globex is trading in a tight 22 handle range on light volume. The night is young. Traders are talking about the big support at the 3305 handle.
Big news was they were not willing to find common ground and the next stimulus package has stalled. Can we see lower? It’s a Friday? Who wants to go home long?
I give you the best of the old school market technicians, JP Morgan, Herriman, Kearn, and Livermore. The traders of the 1930s. How they may have seen the market. I use the lens of Richard D. Wyckoff Principles and Procedures and through the eyes of WB’s hidden internal clock. The clock that controls all turns intraday every day.
We had a good yesterday and this week. Our subscribers have been very lucky with the levels given. I would love for you to join us. If you have not taken the time, now would be a great time for you to subscribe.
Economic Calendar
Closing Prices
In the Tradechat Room
MiM
Small MIM all afternoon left MOC data rudderless with a move down into the reveal at 15:50 which was a 1.5B sell and triggered a buy followed by a selling candle all in about a 10-point range. Not much to see.
Questions? Please email me: Marlin@mrtopstep.com
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Covid Corner:
This is what I would expect to see in the future as we learn to drive this COVID ridden world. We will have outbreaks that we manage, ups and downs.
To use our table, go to https://t2r4.com/cv19/views. Each column is sortable and if you click on a cell you will get a time-based chart of the state.
Wear your masks!
Stay Home!
Chart of the Day
GLOBEX
OUR VIEW:
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 3417.50 | Opening Print: 3417.25 |
| Low: 3374.75 | High 3424.25 |
| Volume: 328,000 | Low: 3327.25 |
| ES Settlement 3340,25 | |
| Total Volume 1.95 M |
S&P 500 RECAP – Trade Date 09/10/ 2020
#ES Money Maker Chart
S&P 500 Futures: Bears Return
After trading in a 42.50 handle overnight range, the S&P 500 opened Thursday’s cash session at 3417.25, up 16.25 handles and went on the print a high of day just after 9:00 at 3424.25 before rolling over into strong selling down to 3380.25 just after 10:00. Then after a lower 3407.25 high just after 10:30, the ES rolled over once again making its way to the 3372.25 morning low, a 45.00 pullback at that point, going into noon.
The midday rally printed a 3395.00 high, and once again sellers kept hitting the bids on the index futures as every rally was sold in the afternoon with the ESU making its low of day at 3327.25, a 90 handle move from the highs just before 2:30. Late in the day the markets did get a modest lift off the lows to settle the day at 3340.25, down 60.75 handles on the day or -1.70%.
In terms of price action, it was all about selling the rallies in the morning and afternoon. Total volume was an impressive 2.28 million.
OUR VIEW:
FAANG & Friends Fall
Facebook Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc., reversed from early gains to sharp losses yesterday. Amazon and Apple lost 2.9% and 3.3% and Netflix Inc., 3.9%. Microsoft fell 2.8% and chip maker Nvidia Corp. declined 3.2%. I have said this before and I hate saying ‘in the old days’ because it signifies something that is in the past but there is no doubt that the S&P 500 is no longer the king of the index markets. The Nasdaq has dethroned the S&P and I do not think it’s ever going back to… the old days.
Our view, I am going to keep this short. I have made decent money this week but I have traded like an idiot. I have not had a lot of vacation of any kind in over 2 years. I think the last real vacation was when Traderdave and I went to Cuba. That all said, I’m BEAT. COVID-19 has really messed up the way we live and as tough as I am it’s wearing on me. Our lean, I am taking the day off. After a 97 handle drop from yesterday’s high to its late-day low, I suspect we see some type of rally. Will it hold? Probably not but at least in the first part of the day we should see higher prices, then I would be on the lookout for a ‘Late Friday RIP!’ I have to admit … this shit acts like shit.
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
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