|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3812.75||Opening Print: 3815.50|
|Low: 3792.75||High 3852.50|
|Volume: 180,000||Low: 3811.25|
|ES Settlement 3833.50|
|Total Volume 1.3 M|
S&P 500 Futures Recap – Trade Date January 20, 2021
New All Time Highs
After trading in a 23.00-handle overnight range, the S&P 500 futures opened Wednesday’s cash session at 3815.50, traded the daily low of 3811.25 in the opening minutes, and then reversed to rally through the morning into the noon hour, printing a mid-day high of 3847.25.
The afternoon was range-bound, and the ES reached the daily high of 3852.50 just after 2:30 before settling at 3844.50, up 55.50 handles on a total volume of 1.3 million contracts traded. In terms of price action, it was all about buying the low on the open and holding until late in the final hour.
In the Tradechat Room
Despite the markets churning higher all day, the MIM was a bit more negative for Inauguration day. Pre-MOC, the MiM was about 1.4B to sell with a symbol lean of around 70% to the sell-side. At the MOC it was larger with a 68% lean and that started the only real selling of the day for the next 10 minutes.
Questions? Please email me: Marlin@mrtopstep.com
Get the skinny when we get it: Join the MiM.
Our U.S. dashboard is pretty much unchanged from yesterday with the counts staying the same but SC moves to stable and VI (Virgin Islands) moves to rising.
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
Wall Street Welcomes Joe Biden As 46th President Of The United States
Trading is an ever-changing game, the tools that we used to use to make money no longer work and the new tools only last as long as the next coder can code it. I for one am not afraid to say it, the trading game isn’t in the futures it’s in stocks. Yesterday, Wall Street welcomed Joe Biden as the next president of the United States. Leading the patriotic rally was Netflix that closed up 17%. The Dow Jones rose 258 points or 0.80%, the S&P 500 finished up 52.94 points or +1.4% and the Nasdaq Composite closed up 2% or 260 points. Earnings have been coming in better than expected. According to FactSet, results have been better than expected with 88% of the companies beating estimates. I have said it a few times and I will say it again; the idea that there was downside risk leading up to the Biden inauguration was a ‘falsehood’. Over the years I admit to falling for some of this BS stock market forecasting but I am not falling for the ‘disinformation’. In fact, @realtraderdave has taught me to buy into the bad news headlines. As long as the government printing presses are rolling 24-7 we are obliged to ‘buy the pullbacks’. I know we sometimes forget but this should be front and center in our trading toolboxes.
Yesterday MSFT closed up $7.78, AMZN closed up 142.50, GOOGL closed up 96.82, the list goes on and on. Several traders I speak to say stocks are up too much and they are waiting for a pullback to ‘get long’ but the sell-offs are few and far between and if you don’t react quickly the train leaves the station without you. It’s a tough game no matter what anyone says.
Our view, who’s to say the ES isn’t going to 3900 or higher? I think the odds favor selling a gap up open today or the first rally above the open (it may take a few minutes) and buying the pullbacks. I know the markets are on new all-time highs but I don’t think the Biden stock market rally is over just yet. Lastly, Covid-19 cases have dropped in 48 of 52 states with only NY and MA showing increases.
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.