|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3714.75||Opening Print: 3708.75|
|Low: 3704.50||High 3710.50|
|Volume: 140,000||Low: 3659.50|
|ES Settlement 3669.25|
|Total Volume 1.7 M|
S&P 500 Futures Recap – Trade Date December 9, 2020
S&P 500 Futures: Dow, S&P, Nasdaq All Down On the Week
After trading in a 10.25 handle overnight range, the S&P 500 futures opening Wednesday’s cash session at 3708.75, up 7.50 handles, traded to a morning high of 3710.50 before selling off through the morning down to 3677.50 just before noon. After a lift to 3685.75 in the noon hour, the ES once again continued selling down to 3659.75 right at 1:00 pm.
The S&Ps did rise in the afternoon to 3675.50 at 1:30 pm, and once again sold down to what would amount to the low of day of 3659.50 at 2:30 before lifting up to 3680.25 in the final minutes before settling at 3669.25, down 32.75 handles or -0.88% on total volume at 1.7 million. In terms of price action, it was about selling the open and covering in the early afternoon.
In the Tradechat Room
Strange MIM as we indicated a sell before the actual15:50 reveal but the data whipped back and forth with 2B on both sides of the ledger and small changes moved what was really a neutral MOC between buy and sell, that kept a choppy close in about a 5-point range.
Questions? Please email me: Marlin@mrtopstep.com
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Looking at the world. There is a bit of a pause in the daily deaths here nearing 11K but the daily new cases are starting to rise again as the USA is the major driver. The next two days of data for the USA are looking really bleak, COVID warning for its effect on the market. It is the best of times and the worst of times.
Analyzing USA data is still difficult as we need 3 weeks beyond the Thanksgiving week in order to do week over week comparisions like this chart is doing. Next week we will have better data.
Wear your masks!
Take your Vitamin D!
Chart of the Day
GMTT – Chart of the Day – XLE – Dec 10, 2020
XLE (Energy Select Sector SPDR Fund)
Energy stocks made a major low at the beginning of NOV.
We saw a nice lift after the rotation from the high-priced overbought big tech stocks.
The up-move can continue but needs a close above 42.20 to confirm higher targets.
For traders that are long the XLE, 38.45 is the suggested protective sell stop.
In our three weekly GMTT research report, we update this sector and many other sectors with trading entry and exit levels.
For more info and how to sign up for a free trial visit our website:
Airbnb Meets Roll Day
There are a lot of moving parts to the stock market right now. From the Covid19 stimulus to the never-ending stock rotations to the beginning of the ES, NQ, YM, RTY rollover that starts today to the Airbnb IPO. I told the MTS forum and the Twitter feed that the weaker tone was tied to the DoorDash IPO, that investors would have to sell stock to buy DASH and that’s what happened. The Dow Jones Industrial Average fell 105.07 points, or 0.4%, to 30068.81. The S&P 500 lost 29.43 points, or 0.8%, to 3672.82, a day after the benchmark notched its 30th record close for this year. Will there be a repeat of that today? I’m not sure.
Our view, the ES closed higher 18 out of 21 sessions in November and has been up 5 out of 8 sessions in December, that’s higher 23 of the last 29 sessions. There is little doubt that the arrival of the vaccines has been a negative for the stay at home stocks but the selling accelerated yesterday with the Nasdaq closing down 2% after a 10-day winning streak. Our lean is to sell the open or early rallies and buy the pullbacks, avoid the midday chop and come back and trade the last hour keeping in mind the late-day NQ weakness.
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.