Market Review
GLOBEX
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 3620.50 | Opening Print: 3609.75 |
| Low: 3585.75 | High 3616.25 |
| Volume: 150K | Low: 3559.50 |
| ES Settlement 3561.75 | |
| Total Volume 1.2M |
S&P 500 Futures RECAP – Trade Date 11/18//2020
After trading in a 34.75 handle range in the overnight session, the S&P 500 futures opened Wednesday’s cash session at 3609.75, up 28.50 handles, and traded down to the morning low of 3604.50 in the first half hour, attracting buyers that pushed the index up to 3615.25, for the daily high, printing at 10:15 and 11:15 CT. From there, the S&Ps would trade lower, selling down to 3587.50 just before 1:30, then following a bounce to a 3602.00 midafternoon high. The ES would sell harder into the close of the session making a low of day of 3559.50 before settling the day at 3561.75, down 45.00 handles or -1.25%.
In terms of price action, it was about selling the late morning high which in turn resulted in a 56.75 handle selloff. In terms of volume, there was another modest 1.2 million contracts traded.
Economic Calendar
Closing Prices
In the Tradechat Room
MiM
The MIM just did not have any punch yesterday, going slightly positive and ndegative and not with any real conviction.
Questions? Please email me: Marlin@mrtopstep.com
Get the skinny when we get it: Join the MiM.
Covid Corner:
Checking in on the world. New daily cases are showing a flattening which is terrific news. This should be apparent on daily news deaths around this time next week. Daily new cases are just under 600K at this time and daily news death are around 9.2K. The USA is most likely going to put in 2,000 daily deaths today or tomorrow which will light up the headlines.
Wear your masks!
Stay home!
Take your Vitamin D!
Chart of the Day
GMTT – Chart of the Day – Cocoa – Nov 19, 2020
Cocoa (MAR)
Another soft commodity that we cover in the three weekly GMTT research reports is Cocoa.
On Nov 6 we went long Cocoa at 2335 and this morning reached our target of 2587.
A ten percent move and we still get higher targets.
Next target 2640, then followed by 2812.
The suggested protective sell stop is 2525.
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OUR VIEW
NYC Covid19 ‘Orange Zone’ School Closures
The S&P and Nasdaq futures (ESZ20:CME) and (NQZ20:CME) were already acting funny when NY mayor Bill de Blasio and NY Governor Andrew Cuomo warned of ‘astronomically high levels’ of new Covid19 cases and the shutdown of all NYC schools. For weeks the markets have been going higher while record numbers of Covid19 cases were being reported. When you mix in all the tech selling and the headlines, the markets sold off sharply in the final hour. It was an ugly sell-off.
Our view, the ES traded down to 3553.75 on Globex last night, that’s 62 handles off the 3616 midday high. I see this two ways: 1) the overall tone of the index markets are weak or 2) after a 62 handle drop the ES tries to rally. The only thing I know for sure is volume is dropping and it feels like some type of risk-off / tech selling.
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.
