S&P 500 Futures RECAP – Trade Date 10/23/ 2020
#ES Money Maker Chart
In the Tradechat Room
A neutral MIM allowed the market to mount a ten-point rally into the close. The MiM was fairly neutral all the way into the close including a 15:50 reveal of just -119M.
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Chart of the Day
The Week Ahead; COVID19, Election, Earnings
It feels to me that things are winding down. The average RTH 3-day trading range for the #ES has ‘slipped’ to only 36 handles and the 5-day average is down to 46.8 handles. While that may not seem that significant, I believe it is. With only 8 days until the US presidential election, it feels like traders are in risk-off mode. After Friday’s ‘Late Day Friday Rip’ the ES that settled at 3248.25 and sold off 23 handles down to 3425.00 after Sunday night’s Globex open. While I could not pinpoint the news or reason for the drop my guess is it stemmed from the increase in COVI-19 cases and election yipes.
The week ahead could be another week of ‘rips and dips’. The key points will come Thursday when the US GDP will be released. The reason the number is so important is that economists are projecting a 32.5% bounce in economic growth before the open and after the close Apple, Alphabet, Amazon, Facebook and Twitter report earnings.
Our view, I wish the ES would open sharply lower because I would buy the open and hold but at 7:48 pm ET the ES is trading 3440,15 off its low. Some of your best trading opportunities are trading the opening gaps, if the ES gaps 10 higher; sell it. If the ES gaps lower on the open; buy it. One of the gap rules which I do not always abide by is to HOLD. Use your stop and STEP BACK. Friday I sold the open and did not hold and the ES fell 30 handles and I never took any heat. All I had to do was exactly what I wrote above, step back and let the trade unfold. I am currently updating the MrTopStep ebook Trading Rules 101, a simple but basic guide to some of the things I use in my daily trading. If the ES doesn’t gap up or down my initial feel would be to sell the early rallies, look for a mid-morning low and get long and then pull back from the screens after 10:30 or 11:00 and come back and trade the final hour. Additionally, I think the trade will continue to be choppy and believe the volumes will fall as we get closer to the election
Market Vitals Technical Analysis
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