|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3797.75||Opening Print: 3771.50|
|Low: 3765.25||High 3781.50|
|Volume: 210,000||Low: 3741.50|
|ES Settlement 3750.50|
|Total Volume 1.7 M|
S&P 500 Futures Recap – Trade Date January 15, 2021
First Down Week of 2021
After trading in a 32.50 handle overnight range, the S&P 500 futures opened Friday’s cash session at 3771.50 and traded up to the daily high of 3781.50 in the first half-hour before reversing to sell down to a daily low of 3741.50 all in the first hour. The rest of the day traded inside the first-hour range with the bulls pushing back up to 3777.75 just after 12:00 before bears resumed their control in the afternoon selling down to 3748.50 before settling at 3750.50, down 41.75 handles on a total volume of 1.7 million. In terms of price action, it was all about selling the early morning high and then buying the 9:30 low and then selling the noon high and holding into the closing minutes.
In the Tradechat Room
OPEX MiM before a 3-day weekend had a sizeable 2.4B buy but no real lean so we closed in a downward slide for the weekend.
Questions? Please email me: Marlin@mrtopstep.com
Get the skinny when we get it: Join the MiM.
Big changes to the good side since Friday as now 38 states are reporting falling daily new cases with just 5 states on the rise.
Wear your masks!
Stay at least 10 feet behind someone wearing a mask! (Particularly in a checkout line)
Take your Vitamin D!
Chart of The Day
GMTT – chart of the day – DAX Index (Germany)
The German stock exchange is one of the most active exchanges in the European region.
The DAX futures being traded in various forms that include the standard futures contract and the mini-sized DAX futures.
There seems to be a very high percentage of correlations between the DAX and the leading US stock Indices.
The DAX Index is very responsive to the European Central Bank or ECB policies.
Any important events in any of the peripheral countries in the Eurozone are bound to impact the performance of the DAX.
The next ECB monetary meeting is taking place this Thursday (Jan 21).
As you can see on the chart the Index is trading off its last high.
We gave a sell signal and went short the DAX at 13890 with a buy stop at 14095.
Projected downside target is 12920.
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Dow Down 3 In A Row, Get Ready For The Rip
It’s crazy, early last week I said I didn’t think the markets were going to crash but that I thought they could pull back 1% to 3% and the S&P dropped a little over 2%. I am not going to do a big view tonight. The idea was to be short late last week because of security concerns over the Biden inauguration and a report that several people died after taking the Pfizer coronavirus vaccine. The ES was weak Thursday but accelerated to the downside late Friday and closed on the lows of the day. Sunday night the ES sold off down to 3740.50 on Globex but settled 4 handles higher and then traded all the way up to 3784 early last night.
Our view, getting the Dow, S&P and Nasdaq to close lower 3 days in a row is not easy. Really big news may change that from time to time but as I always say, getting one down day is one thing, getting two down days in a row happens, but 3 consecutive down days in a row is few and far between and on the occasions they do occur they tend to be a buying opportunity. Our lean is for a bounce/higher prices. There was a thought process last week that demonstrators were going to try and disrupt the inauguration but with nearly 25,000 troops on the ground that doesn’t seem very likely.
Danny Riley is a 39-year veteran of the CME trading floor. He ran one of the largest S&P desks on the floor of the CME Group since 1985.
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.